Maximizing Dollar General Returns to 11.1% with Options Strategies

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Dollar General Corp (Symbol: DG) is currently offering a 2.1% annualized dividend yield. Shareholders can enhance their return by selling a June 2026 covered call at the $125 strike for a premium of $7.70, resulting in an additional annualized return of 8.9%. This brings the total potential return to 11.1% if the stock is not called away, while a rise above $125 would yield a total return of 21.2%, contingent on a 14.2% increase in share price from its current level of $109.78.

As of Wednesday afternoon trading, the overall put volume among S&P 500 components stood at 850,295 contracts, compared to 1.69 million call contracts, reflecting a put:call ratio of 0.50. This indicates significantly higher call volume relative to puts, suggesting that buyers are favoring call options in the current market.

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