Shareholders of REV Group Inc (NYSE: REVG) can enhance their income by selling a January 2026 covered call at a $60 strike, collecting a premium of $2.45, which translates to an annualized return of 10.7%. This adds to the current 0.5% annualized dividend yield for a potential total of 11.2%, assuming the stock is not called away. The stock must increase by 26.2% to reach the strike price, resulting in a 31.3% return if called.
The current price of REV Group Inc is $47.72, with a historical volatility of 46% calculated over the last 250 trading days. As of now, put volume for S&P 500 options is at 1.19 million contracts and call volume at 2.07 million contracts, yielding a put:call ratio of 0.57, indicating stronger call buying compared to long-term averages.
