Cracker Barrel Old Country Store Inc (CBRL) shareholders can enhance their income by selling a December 2027 covered call at the $95 strike for a premium of $9.40, which translates to an annualized return of approximately 6%. This, combined with the stock’s current 1.5% annualized dividend yield, could lead to a total annualized return of 7.5% if the stock is not called away. The share price would need to increase by 44.5% for the stock to be called, resulting in a potential return of 58.8%, plus any dividends collected prior to that event.
The trailing twelve-month volatility for Cracker Barrel is calculated at 58%, based on the last 250 trading days and a current price of $65.39. Additionally, during mid-afternoon trading on Friday, the S&P 500 saw a put volume of 1.19M contracts and call volume of 2.07M, indicating a put:call ratio of 0.57, suggesting a current preference for call options among traders.
