Blue Owl Capital Corporation (OBDC) Covered Calls

Blue Owl Capital Corp. is a leading business development company that provides direct lending solutions to U.S. middle-market companies. It focuses on senior secured loans, providing flexible capital to private equity-backed businesses. OBDC aims to generate high current income while prioritizing capital preservation.

You can sell covered calls on Blue Owl Capital Corporation 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 OBDC (prices last updated Tue 4:16 PM ET):

Blue Owl Capital Corporation (OBDC) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
11.68 +0.17 11.66 11.73 11.4M 9.3 5.7
Covered Calls For Blue Owl Capital Corporation (OBDC)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 12.5 0.05 11.68 0.4% 5.8%
Apr 17 12.5 0.15 11.58 4.5% 31.0%
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Blue Owl Capital Corp. (NYSE: OBDC), formerly known as Owl Rock Capital Corp., is the second-largest publicly traded business development company (BDC) in the United States. Headquartered in New York, the firm specializes in providing private credit solutions to middle-market companies, typically defined as those with annual revenues between $50 million and $2.5 billion. By acting as a direct lender, the company bypasses traditional banking intermediaries to offer tailored financing packages. Its primary objective is to deliver consistent current income and modest capital appreciation for shareholders through a disciplined investment approach.

Core Business and Products

  1. Senior Secured Loans: The vast majority of the portfolio is comprised of first-lien and unitranche loans. These investments sit at the top of a company’s capital structure, providing priority in repayment and substantial downside protection.
  2. Direct Origination: Unlike funds that buy loans on the secondary market, the company’s investment team directly originates deals. This allows for deeper due diligence, better structural protections, and stronger relationships with the private equity sponsors who back the borrowers.
  3. Floating Rate Debt: Nearly all of the company’s debt investments are floating rate. This structure provides a natural hedge against rising interest rates, as the income generated by the portfolio typically increases alongside market benchmarks.
  4. Equity Co-Investments: While primarily a debt investor, the company occasionally takes small equity positions or warrants in its portfolio companies to capture additional upside during a successful exit or recapitalization.

Competitive Landscape

The BDC sector is dominated by a few massive players with the scale to lead large-cap direct lending deals. OBDC’s primary rival is Ares Capital Corp, the largest BDC by market capitalization. It also competes directly with Blackstone Secured Lending Fund and FS KKR Capital Corp for large, sponsor-backed transactions. In the mid-cap and retail-oriented segments, the company faces competition from Main Street Capital and Golub Capital BDC. The company differentiates itself through its massive $16.5 billion portfolio and its deep integration with the broader Blue Owl Capital platform, which manages over $300 billion in alternative assets.

Strategic Outlook and Innovation

Blue Owl Capital Corp. is increasingly focused on the "upper middle market," where borrowers exhibit more resilient cash flows and stronger competitive positions. Recently, the company executed a strategic $1.4 billion asset sale to institutional investors, a move designed to validate its portfolio marks and increase balance sheet flexibility. By selling these loans at near-par value, management has demonstrated the high quality of its underwriting in a volatile credit environment. This strategy allows the firm to recycle capital into new, higher-yielding opportunities while maintaining a conservative leverage profile within its target range.

Looking ahead, the company is leveraging advanced data analytics to monitor the health of its 234 portfolio companies in real-time. This digital transformation helps the investment committee identify potential credit stress early and intervene before issues escalate. The firm is also expanding its "GP Strategic Capital" initiatives, providing long-term equity solutions to private equity sponsors. By offering a full suite of credit and equity products, Blue Owl aims to become the partner of choice for the private equity ecosystem, ensuring a steady pipeline of high-quality deal flow through all phases of the economic cycle.