American States Water Company (AWR) Covered Calls
American States Water Company is a diversified public utility that provides water and electric services across California and nine other states. Celebrating 140 years of service in 2026, the company operates primarily through its regulated subsidiaries, Golden State Water and Bear Valley Electric, and provides critical water infrastructure management to military installations nationwide.
You can sell covered calls on American States Water Company to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for AWR (prices last updated Tue 4:16 PM ET):
| American States Water Company (AWR) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 77.83 | -0.89 | 72.58 | 90.00 | 340K | 23 | 3.1 |
| Covered Calls For American States Water Company (AWR) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| May 15 | 80 | 0.65 | 89.35 | -10.5% | -153.3% | |
| Jun 18 | 80 | 1.30 | 88.70 | -9.8% | -60.6% | |
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Core Business and Products
American States Water Company (AWR) is a "Dividend King" with a historic track record of consecutive dividend increases spanning seven decades. Its core business is split into three segments: Water, Electric, and Contracted Services. Through Golden State Water, it provides regulated water service to over 260,000 customer connections in California. A significant growth engine for the company is its American States Utility Services (ASUS) subsidiary, which manages water and wastewater systems on 11 military bases under 50-year privatization contracts with the U.S. government.
Competitive Landscape
AWR operates in a highly regulated environment where it holds local monopolies. However, it competes for the acquisition of municipal water systems and for new military privatization contracts. In the investment market, AWR is a benchmark for low-beta, high-yield utility stocks that prioritize long-term dividend growth over rapid capital appreciation.
- American Water Works Company, Inc.: The largest investor-owned water utility in the U.S. and a primary peer for valuation and yield benchmarks.
- California Water Service Group: A direct regional competitor in the California market with a similar regulated business model.
- Essential Utilities, Inc.: A major peer that provides both water and natural gas services across multiple states.
- Middlesex Water Company: A mid-cap peer with a strong history of dividend growth and regulated operations in the Northeast.
- The York Water Company: The oldest investor-owned utility in the U.S., serving as a key peer in the regulated water sector.
Strategic Outlook and Innovation
AWR’s 2026 outlook is characterized by "Operational Excellence and Contract Expansion." The company is aggressively bidding on new military privatization contracts (ASUS) while earmarked a significant portion of its 2026 capital budget for PFAS remediation to ensure compliance with new federal EPA standards. Innovation is centered on "Smart Water" technology, including the deployment of advanced metering infrastructure (AMI) to detect leaks and provide real-time usage data to customers.
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Want more examples? AWK Covered Calls | AWRE Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
