Shareholders of Pitney Bowes Inc (PBI) can enhance their income by selling the January 2026 covered call at the $12 strike, yielding a premium of $1.15, which translates to an annualized return of 19.1%. This potential strategy could raise the total annualized return to 21.6% if the stock is not called away. The stock would need to increase by 11.2% for shareholders to lose any upside above $12, resulting in a combined 21.9% return if the stock is called away along with dividends collected.
As of Thursday afternoon trading, Pitney Bowes’ stock price sits at $10.85 with a trailing twelve-month volatility of 48%. Additionally, there was significant market activity in options trading, with put volume at 950,843 contracts and call volume at 2.14 million, creating a put:call ratio of 0.44, indicating a preference for call options among traders.
