Shareholders of J.B. Hunt Transport Services, Inc. (JBHT) can enhance their income by selling the December 2027 covered call at the $280 strike for a premium of $22.50, resulting in an annualized return of 5.4%, which combined with the 0.8% dividend yield provides a total annualized return of 6.2%, assuming the stock is not called away. The shares would need to rise 24.3% to reach the strike price, resulting in a total return of 34.3% if exercised.
As of Monday afternoon trading, the stock price was $225.27, with a trailing twelve month volatility of 40%. Additionally, the options market showed a put volume of 1.19 million and call volume of 2.27 million, reflecting a put-to-call ratio of 0.52, indicating high call activity compared to puts. This is significantly below the long-term median put-to-call ratio of 0.65.
