Skip to main content

YieldBoost CMCL From 3.3% To 14.2% Using Options

Shareholders of Caledonia Mining Corporation PLC (CMCL) looking to boost their income beyond the stock's 3.3% annualized dividend yield can sell the December covered call at the $22.50 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.2% annualized rate in the scenario where the stock is not called away. Any upside above $22.50 would be lost if the stock rises there and is called away, but CMCL shares would have to climb 31% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 37.1% return from this trading level, in addition to any dividends collected before the stock was called.
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.