CRZO Dividend Type Payments

Carrizo Oil & Gas, Inc dividend

Although CRZO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Carrizo Oil & Gas, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Carrizo Oil & Gas, Inc (CRZO)
Bid Ask Last Change Volume P/E Market Cap
14.00 15.09 14.41 -0.21 2.8M - 0.0B

CRZO Dividend-Like Income Using Covered Calls

With CRZO at 14.41, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 0.43 0.1
5% 0.72 0.2
10% 1.44 0.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On CRZO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 17.00 0.05 11 0.5 1.91 (13.3%)
Jan 18 20.00 0.05 39 0.1 4.91 (34.1%)
5% Yield On CRZO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 17.00 0.05 11 0.5 1.91 (13.3%)
Jan 18 19.00 0.15 39 0.4 3.91 (27.1%)
10% Yield On CRZO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 17.00 0.05 11 0.5 1.91 (13.3%)
Jan 18 17.50 0.35 39 0.9 2.41 (16.7%)

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