Mission Produce, Inc. (AVO) Covered Calls

Mission Produce is a world leader in the sourcing, packing, and distribution of fresh Hass avocados, mangos, and blueberries. The vertically integrated firm operates a global network of ripening centers and packing facilities, ensuring a year-round supply for retail and foodservice customers in over 25 countries while maintaining high standards for quality and shelf-life.

You can sell covered calls on Mission Produce, Inc. 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 AVO (prices last updated Tue 4:16 PM ET):

Mission Produce, Inc. (AVO) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
14.46 +0.22 13.90 15.00 283K 27 1.0
Covered Calls For Mission Produce, Inc. (AVO)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 15 0.35 14.65 2.4% 35.0%
Apr 17 15 0.20 14.80 1.4% 9.6%
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Mission Produce (AVO) operates as a premier global distributor in the fresh produce industry, specifically dominating the avocado market. The company’s business model is built on high vertical integration, spanning from international farming and sourcing across 20+ growing regions to a sophisticated "forward distribution" network. By controlling the ripening process through proprietary technology, Mission provides ready-to-eat fruit that meets the precise specifications of retail and foodservice giants. In addition to its core avocado business, the firm has diversified into mangos and blueberries, leveraging its existing logistics infrastructure to capture growth in complementary high-value produce categories.

The year 2026 marks a transformative period for the company following its January 14, 2026, announcement to acquire its primary rival, Calavo Growers (CVGW), in a $430 million deal. This merger, expected to close by August 2026, will create a "Produce Powerhouse" with over $2 billion in annual net sales and a consolidated footprint of four packing houses in Mexico. To protect against hostile takeovers during this transition, the board adopted a "Limited Duration Stockholder Rights Plan" in January 2026. Despite facing new 2026 tariffs on Mexican produce, Mission is aggressively expanding its sourcing from Guatemala and South Africa to maintain its year-round supply chain and "ripe-and-ready" market dominance.

Competitive Landscape

The global fresh produce market is highly competitive and susceptible to regional supply shocks and price volatility. Mission Produce competes for shelf space and sourcing volume with Calavo Growers, Inc. (prior to merger completion) and Dole plc. In the broader diversified food and consumer staples space, it also rivals Archer-Daniels-Midland Company and Corteva, Inc..

Mission differentiates itself through its "Advanced Ripening" technology and the scale of its Laredo, Texas "Megacenter," which acts as the primary hub for North American distribution. Unlike fragmented regional growers, Mission’s multi-origin sourcing strategy provides a hedge against seasonal crop failures in any single country. The company’s "Emeralds in the Rough" line—marketing aesthetically imperfect but high-quality fruit—demonstrates its focus on reducing food waste and maximizing yield from its vertically integrated farms. With the integration of Calavo’s "prepared foods" segment (including retail guacamole), Mission is moving up the value chain into higher-margin, branded consumer products that offer greater price stability than bulk produce.

Strategic Outlook and Innovation

Strategic priorities for 2026 are focused on the integration of Calavo and the realization of $25 million in projected cost synergies. The firm enters 2026 with strong momentum, hitting 52-week highs in February as investor confidence grows in the "Consolidated Avocado" thesis. Management is scheduled to report its next earnings on March 9, 2026, where analysts will look for updates on the regulatory approval of the merger and the impact of its 2026 capital expenditure plan on its Peruvian farming operations. The company is also maintaining a disciplined buyback approach, supported by a significant insider ownership stake of approximately 35%.

Looking ahead, Mission is prioritizing "Agentic AI" to revolutionize its demand forecasting and cold-chain logistics. By automating the coordination between harvest timelines in South Africa and ripening schedules in the UK or U.S., the company aims to reduce "shrink" (spoilage) by 10% and lower logistical overhead. This data-driven approach, combined with the expansion into papayas and tomatoes via the Calavo acquisition, positions Mission to be the primary one-stop shop for fresh, healthy, and convenient produce globally. With a consensus price target of $17.00, the firm is successfully pivoting from a commodity distributor to a sophisticated global logistics and consumer brand platform.