Permian Basin Royalty Trust (PBT) Covered Calls
Permian Basin Royalty Trust is a passive oil and natural gas royalty trust that owns overriding royalty interests in the Waddell Ranch and other properties in Texas. Managed by Simmons Bank, the trust provides unitholders with monthly cash distributions derived from the production and sale of hydrocarbons. In 2026, PBT is navigating a period of high capital expenditures on its Waddell Ranch acreage as the operator reinvests in horizontal drilling.
You can sell covered calls on Permian Basin Royalty Trust 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 PBT (prices last updated Fri 1:30 PM ET):
| Permian Basin Royalty Trust (PBT) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 22.07 | -0.06 | 22.05 | 22.15 | 21K | 71 | 1.0 |
| Covered Calls For Permian Basin Royalty Trust (PBT) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| May 15 | 22.5 | 0.40 | 21.75 | 2.0% | 33.2% | |
| Jun 18 | 22.5 | 0.90 | 21.25 | 4.4% | 28.7% | |
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Core Business and Products
Permian Basin Royalty Trust (PBT) is an express trust holding overriding royalty interests in established oil and gas properties across 33 Texas counties. Its primary asset is a 75% net overriding royalty interest in the Waddell Ranch. As a trust, PBT does not conduct drilling; instead, it receives a share of net profits from operators like Blackbeard Operating, LLC. In early 2026, monthly payouts have been restricted as the operator continues an aggressive capital program to modernize mature fields and boost long-term capacity.
Competitive Landscape
PBT competes for income-focused capital against energy royalty vehicles and MLPs. It serves as a pure-play leveraged bet on Permian production efficiency and WTI crude prices. In 2026, unitholders are closely monitoring the "excess cost" position at Waddell Ranch, waiting for new production revenue to exceed the current capital reinvestment phase.
- Texas Pacific Land Corporation: One of the largest landowners in the Permian Basin; a high-liquidity benchmark for royalty-style exposure.
- Viper Energy, Inc.: A leading Permian mineral and royalty company that acquired Sitio Royalties in 2025; features a highly active options chain.
- Coterra Energy Inc.: A major Permian and Anadarko basin operator; a liquid peer for investors seeking exposure to the same geography with high option volume.
- Kimbell Royalty Partners, LP: A diversified mineral and royalty company with a significant Permian footprint and active options.
- San Juan Basin Royalty Trust: A peer royalty trust that remains an optionable staple for energy-income investors, despite its focus on natural gas.
Strategic Outlook and Innovation
The 2026 outlook for PBT is "Development over Distribution." While heavy operator spending has temporarily lowered monthly checks, the transition to modern horizontal wells at Waddell Ranch is intended to secure the trust's payout capacity for the next decade. Management is currently focused on auditing production volumes and ensuring administrative transparency. PBT remains a key vehicle for investors seeking direct hydrocarbon exposure without the operational risks or debt loads of traditional E&P companies.
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Want more examples? PBR.A Covered Calls | PBW 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.
