Shareholders of PBF Energy Inc (Symbol: PBF) can enhance their investment returns by selling a September covered call at the $60 strike price, which is currently bid at $6.20. This strategy could yield an annualized return of 28.1% if the stock is not called away, translating to an additional 25.9% above the 2.2% annualized dividend yield. The stock would need to rise 21.4% to reach the $60 mark for the call to be exercised, resulting in an overall return of 34% when including dividends.
PBF’s trailing twelve months volatility is calculated at 67%, which should be considered when evaluating the risks and rewards of this strategy. Current trading levels for PBF stand at $49.53.
