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Patterson-UTI Energy Inc. (Symbol: PTEN) offers a 5.8% annualized dividend yield. Shareholders can enhance their income by selling a January 2027 covered call at the $10 strike, collecting a premium of 35 cents, which adds another 4.7% return for a total potential annualized return of 10.4%, assuming the stock is not called away. The stock would need to rise 80.2% to be called away, leading to an 86.5% total return including dividends if this occurs.
The trailing twelve-month volatility for PTEN is calculated at 59%, based on the last 249 trading days. In related trading activity, as of Monday afternoon, S&P 500 put volume was 1.01 million contracts and call volume was 1.85 million contracts, resulting in a put:call ratio of 0.54, indicating high demand for call options.
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