Analysis of OBDC Covered Call Options
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy OBDC?
Source: NASDAQ.COM
- Options Contract Overview: With OBDC stock priced at $11.48, investors can purchase shares and sell a covered call at a $12.50 strike price, potentially achieving a total return of 12.80% by the November 20 expiration, excluding dividends and commissions.
- Potential Return Analysis: At a current premium of 45 cents, if OBDC shares are called away, investors gain additional returns; however, significant upside could be missed if the stock price surges.
- Expiration Risk: Given that the $12.50 strike price is approximately 9% above the current stock price, there is a 50% chance that the covered call will expire worthless, allowing investors to retain both their shares and the premium collected.
- Yield Boost Effect: Should the option expire worthless, investors could see a 3.92% boost in returns, annualized at 5.04%, referred to as YieldBoost, highlighting the potential advantages of this options strategy.
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Analyst Views on OBDC
Wall Street analysts forecast OBDC stock price to rise
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 11.860
Low
12.00
Averages
14.19
High
15.50
Current: 11.860
Low
12.00
Averages
14.19
High
15.50
About OBDC
Blue Owl Capital Corporation is a specialty finance company focused on lending to United States middle-market companies. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns, including senior secured, subordinated, or mezzanine loans and equity-related instruments. Its investment strategy is intended to generate favorable returns across credit cycles with an emphasis on preserving capital. It has investments in approximately 219 portfolio companies. Its portfolio by industry includes Internet software and services, insurance, food and beverage, asset-based lending and fund finance, healthcare providers and services, healthcare technology, buildings and real estate, consumer products, manufacturing, aerospace and defense, distribution, business services, and others. It is externally managed by Blue Owl Credit Advisors LLC.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Options Contract Overview: With OBDC stock priced at $11.48, investors can purchase shares and sell a covered call at a $12.50 strike price, potentially achieving a total return of 12.80% by the November 20 expiration, excluding dividends and commissions.
- Potential Return Analysis: At a current premium of 45 cents, if OBDC shares are called away, investors gain additional returns; however, significant upside could be missed if the stock price surges.
- Expiration Risk: Given that the $12.50 strike price is approximately 9% above the current stock price, there is a 50% chance that the covered call will expire worthless, allowing investors to retain both their shares and the premium collected.
- Yield Boost Effect: Should the option expire worthless, investors could see a 3.92% boost in returns, annualized at 5.04%, referred to as YieldBoost, highlighting the potential advantages of this options strategy.
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