Investors in Blue Owl Capital Corporation (OBDC) welcomed new options trading today for the November 20th expiration, with contracts offering 284 days until expiration. A standout is the call contract at a $12.50 strike price, currently bid at 45 cents. If shares are bought at the current price of $11.48 each and the call is sold, this could yield a total return of 12.80% if the options are exercised.
The $12.50 strike represents a 9% premium to OBDC’s current trading price. Analysis suggests there’s a 50% chance the covered call contract may expire worthless, allowing the investor to retain both shares and premium, contributing to a potential 3.92% increase in returns, or 5.04% annualized. The call contract’s implied volatility stands at 32%, while the actual trailing volatility over the last 250 trading days is measured at 25%.
