MCRI Dividend Type Payments
Although MCRI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Monarch Casino & Resort, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:55 PM ET):
| Monarch Casino & Resort, Inc. (MCRI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 91.58 |
92.08 |
91.93 |
+0.40 |
54K |
21 |
1.7B |
MCRI Dividend-Like Income Using Covered Calls
With MCRI at 91.93, 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% |
2.76 |
0.8 |
| 5% |
4.60 |
1.3 |
| 10% |
9.19 |
2.5 |
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 MCRI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
100.00 |
2.35 |
137 |
1.7 |
7.92 (8.6%) |
| Sep 18 |
100.00 |
3.70 |
229 |
1.6 |
7.92 (8.6%) |
| 5% Yield On MCRI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
100.00 |
2.35 |
137 |
1.7 |
7.92 (8.6%) |
| Sep 18 |
100.00 |
3.70 |
229 |
1.6 |
7.92 (8.6%) |
| 10% Yield On MCRI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
95.00 |
3.80 |
137 |
2.8 |
2.92 (3.2%) |
| Sep 18 |
95.00 |
5.80 |
229 |
2.5 |
2.92 (3.2%) |
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