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Patterson-UTI Energy Inc. (PTEN) shareholders can enhance their income by selling a covered call for February 2026 at a $7 strike price, which offers a premium of $0.30, equating to an annualized return of 23.6% on top of the current 5.1% annualized dividend yield. This brings the total possible annualized return to 28.6% if shares are not called away. The stock would need to rise 11.5% for shares to be called, yielding a 16.2% return in that scenario, in addition to dividends.
The company’s trailing twelve-month volatility is calculated at 60%, based on the last 249 trading days and a current price of $6.33. As of mid-afternoon trading on Monday, the put volume among S&P 500 components was 856,151 contracts with call volume at 1.64 million, resulting in a put:call ratio of 0.52, indicating a preference for call options among traders.
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