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Shareholders of Perdoceo Education Corp (PRDO) can enhance their 1.6% annualized dividend yield by selling a January 2026 covered call at the $35 strike, collecting a premium of $2.15, which annualizes to an additional 11.2%. This brings the total potential annualized return to 12.9%, assuming the stock is not called away. If the stock exceeds $35, the shareholder stands to earn a total return of 17.7%, factoring in any dividends collected prior to the call.
PRDO’s current trading price is $31.58, indicating a 10.9% increase needed for the stock to be called. Additionally, the company’s trailing twelve-month volatility is calculated at 37%, providing insight into the risk associated with exercising this options strategy.
On Monday, put volume among S&P 500 components was 905,283 contracts, while call volume reached 1.60 million, resulting in a put:call ratio of 0.57, indicating a strong preference for call options in trading activities.
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