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 Tue 4:16 PM ET):
| Castle Biosciences, Inc. - Common stock (CSTL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 19.11 |
20.84 |
19.85 |
-0.24 |
312K |
96 |
0.6B |
CSTL Dividend-Like Income Using Covered Calls
With CSTL at 19.85, 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% |
0.60 |
0.2 |
| 5% |
0.99 |
0.3 |
| 10% |
1.99 |
0.5 |
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 16 |
22.50 |
0.10 |
18 |
0.6 |
1.66 (8.4%) |
| Oct 17 |
22.50 |
1.10 |
172 |
0.6 |
1.66 (8.4%) |
| 5% Yield On CSTL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
22.50 |
0.10 |
18 |
0.6 |
1.66 (8.4%) |
| Oct 17 |
22.50 |
1.10 |
172 |
0.6 |
1.66 (8.4%) |
| 10% Yield On CSTL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
22.50 |
0.10 |
18 |
0.6 |
1.66 (8.4%) |
| Oct 17 |
22.50 |
1.10 |
172 |
0.6 |
1.66 (8.4%) |
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