Shareholders of Pilgrims Pride Corp. (PPC) can enhance their income beyond the current 13.8% annual dividend yield by selling a covered call for July 2026 at a strike price of $53.70, garnering a premium of $3.40, which translates to an additional 7.3% yield. If the stock is not called away, this could result in a total annual return of 21.1%. However, if PPC shares rise by 17.9% to hit the strike price, shareholders could still realize a total return of 25.4%, factoring in dividends collected before the call.
As of the latest data, the stock is trading at $45.67, with a trailing twelve-month volatility of 36%. On Tuesday, in mid-afternoon trading, S&P 500 components saw put volume at 504,639 contracts and call volume at 1.03 million contracts, resulting in a put-to-call ratio of 0.49, indicating a preference for call options among traders.
