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Shareholders of Argan Inc (Symbol: AGX) can enhance their income by selling a covered call for December 2026 at the $500 strike price, capitalizing on a bid of $61.00. This strategy could yield an additional 16% annualized return on top of the current 0.6% annualized dividend yield, leading to a total of 16.6% if the stock is not called away. For AGX shares to be called, they would need to increase by 43.9%, resulting in a potential 61.5% total return for shareholders, including any dividends received prior to the call.
The stock’s historical volatility is calculated at 68%, based on the past 250 trading day closing values. Meanwhile, as of mid-afternoon trading on Wednesday, S&P 500 put volume was 787,816 contracts and call volume was 1.58 million contracts, resulting in a put:call ratio of 0.50, indicating a preference for calls.
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