Liberty Energy Inc (Symbol: LBRT) shareholders looking to enhance their income can sell a November covered call at a $12 strike price and collect a premium of $1.15, which translates to an additional annualized return of 30.4%. This would result in a total potential return of 33.3% annually if the stock is not called away. The stock must rise 6.2% from its current price of $11.31 for the shares to be called, which would still yield a 16.4% return plus any dividends earned.
The company has a current annualized dividend yield of 2.8%, though dividends are subject to the company’s profitability. The trailing twelve-month volatility for Liberty Energy is calculated at 57% based on recent trading data.
In mid-afternoon trading on a Tuesday, the S&P 500 noted high call volume with 1.67M contracts traded against 1.01M put contracts, resulting in a put:call ratio of 0.60, indicating increased buyer interest in call options compared to puts.
