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Darden Restaurants, Inc. (Symbol: DRI) shareholders can enhance their income with a September 2026 covered call at the $175 strike, offering a $15.50 premium, which translates to an additional 10.9% annualized return on top of the current 3.5% dividend yield. This could result in a total of 14.4% annualized returns, assuming the stock is not called away. If DRI shares increase by 2.3% to reach $175, shareholders would secure an 11.3% return, including dividends, before the stock is called.
As of now, Darden’s stock price stands at $170.76, with a trailing twelve-month volatility of 29%. The put-call ratio for S&P 500 options trading on Wednesday was 0.48, indicating high demand for calls compared to puts.
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