CSTL Dividend Type Payments
Although CSTL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Castle Biosciences, Inc. - Common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:55 PM ET):
Castle Biosciences, Inc. - Common stock (CSTL) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
24.34 |
24.45 |
24.39 |
+0.06 |
202K |
- |
0.7B |
CSTL Dividend-Like Income Using Covered Calls
With CSTL at 24.39, here's a table showing how big the annual "dividend" (i.e. 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% |
0.73 |
0.2 |
5% |
1.22 |
0.3 |
10% |
2.44 |
0.7 |
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 CSTL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
25.00 |
0.60 |
12 |
5.0 |
0.55 (2.3%) |
Oct 18 |
25.00 |
2.25 |
166 |
1.4 |
0.55 (2.3%) |
5% Yield On CSTL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
25.00 |
0.60 |
12 |
5.0 |
0.55 (2.3%) |
Oct 18 |
25.00 |
2.25 |
166 |
1.4 |
0.55 (2.3%) |
10% Yield On CSTL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
25.00 |
0.60 |
12 |
5.0 |
0.55 (2.3%) |
Oct 18 |
25.00 |
2.25 |
166 |
1.4 |
0.55 (2.3%) |
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