Shareholders of PROG Holdings Inc (Ticker: PRG) can enhance their income by selling covered calls with a January 2026 expiration at a $35 strike price. The current bid of $1.90 offers an annualized return of 11.6% on the current stock price of $30.32, combining with the existing 1.7% annual dividend yield for a potential total return of 13.3% if the stock is not called away. If the stock price exceeds $35, shareholders could see a 22.9% return, including dividends, assuming a 16.6% increase in share price.
As of mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 957,343 contracts, with a call volume of 1.59 million, resulting in a put-to-call ratio of 0.60. This indicates a higher preference for call options compared to puts, contrasted with a long-term median ratio of 0.65.
