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Civitas Resources Inc (CIVI) shareholders can enhance their income by selling an October 2026 covered call at a $50 strike price, which offers a premium of $2.40—translating to an annualized return of 6.5%. This potential combined with the stock’s existing 6% annualized dividend yield results in a total potential return of 12.5%, assuming the stock is not called away. Currently, CIVI shares trade at $33.41, needing to rise 50.2% to reach the $50 strike, yielding a 57.4% return if called.
The trailing twelve-month volatility for CIVI stands at 62%. In mid-afternoon trading on a Tuesday, S&P 500 components showed a put volume of 643,855 contracts and a call volume of 1.24 million contracts, resulting in a put:call ratio of 0.52, reflecting a preference for calls compared to the long-term median ratio of 0.65.
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