Shareholders of Patterson-UTI Energy Inc. (PTEN) can enhance their income by selling a January 2027 covered call at a $10 strike, collecting a premium of 55 cents that translates to an annualized return of 5.7%. This augments the stock’s existing 5.3% dividend yield for a total potential return of 11.1% if the stock is not called away. The stock would need to increase by 66.7% for the shareholders to lose any upside beyond the $10 strike, resulting in a total return of 75.8% including dividends before the call.
As of the latest trading data, Patterson-UTI has a share price of $6.00 and a trailing twelve-month volatility of 58%. Additionally, trading activity on Monday revealed a put volume of 905,283 contracts and a call volume of 1.60 million, giving a put-call ratio of 0.57, indicating a strong preference for call options among traders.
