United Parcel Service, Inc. (UPS) Covered Calls

United Parcel Service, Inc. covered calls United Parcel Service (UPS) is a global logistics leader and a premier provider of package delivery and supply chain management solutions. Operating one of the worlds largest integrated networks, UPS serves over 200 countries with a focus on high-margin segments like healthcare and small businesses. Guided by its "Better, Not Bigger" strategy, the firm is driving profitability through network automation and specialized services while maintaining a core commitment to shareholder dividends.

You can sell covered calls on United Parcel Service, 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 UPS (prices last updated Mon 12:45 PM ET):

United Parcel Service, Inc. (UPS) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
117.05 -0.29 117.03 117.07 2.0M 18 100
Covered Calls For United Parcel Service, Inc. (UPS)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 117 1.72 115.35 2.9% 88.2%
Mar 20 115 4.50 112.57 3.6% 32.8%
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Extended Business Description

United Parcel Service, Inc. (UPS) is a global titan in the logistics and transportation industry, renowned for its "Big Brown" trucks and highly integrated delivery network. Headquartered in Atlanta, Georgia, UPS has shifted its focus from sheer volume to high-value "revenue per piece" under its "Better, Not Bigger" framework. By leveraging one of the world’s most sophisticated air and ground fleets, UPS provides a seamless end-to-end experience for millions of customers, from individual shippers to global enterprises.

Core Business and Operating Segments

  1. U.S. Domestic Package: The heart of the company, this segment manages the time-definite delivery of packages throughout the United States. UPS has aggressively modernized this division through its "Fit for Purpose" strategy, which involves closing older facilities in favor of massive, highly automated "super-hubs." This shift, combined with a strategic "glide-down" of lower-margin Amazon volume, is designed to drive structural margin expansion.
  2. International Package: Operating in more than 220 countries and territories, this segment offers premium cross-border services. It serves as a high-margin growth engine, particularly in Europe and Asia, where UPS leverages its global air hub in Louisville (Worldport) to facilitate rapid international trade.
  3. Supply Chain Solutions: This segment provides a suite of high-value services including freight forwarding, customs brokerage, and specialized logistics. A major pillar of this division is UPS Healthcare, which focuses on complex, temperature-sensitive pharmaceutical shipments. With the acquisition of companies like Andlauer Healthcare Group, UPS is positioning this segment to be a $20 billion revenue driver by the end of 2026.

Competitive Landscape

UPS operates in a "duopoly" with its primary rival FedEx Corporation, though the two differ in their network structures—UPS uses a fully integrated "one network" model while FedEx traditionally separated its air and ground units. In the asset-light brokerage space, it competes with C.H. Robinson Worldwide and Expeditors International. Additionally, as e-commerce continues to evolve, Amazon remains both a significant customer and an increasing competitive threat through its own captive logistics network.

Strategic Outlook and Innovation

The strategic roadmap for UPS in 2026 is centered on "Innovation Driven Productivity." The company is rolling out advanced technologies like RFID (Radio Frequency Identification) across its entire fleet to eliminate millions of manual scans and reduce "misloads" to near zero. Financially, UPS is navigating a pivot toward higher-quality revenue, prioritizing Small and Medium Businesses (SMBs) and B2B shipments that offer better margins than residential e-commerce. Despite significant capital expenditures for its "Network of the Future," UPS remains a premier income stock, prioritizing a high dividend payout and opportunistic share repurchases. As global trade lanes shift and automation reaches a critical mass, UPS is positioned to maintain its status as the world’s most efficient and profitable orchestrator of global commerce.