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 9:50 AM ET):
| Monarch Casino & Resort, Inc. (MCRI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 97.13 |
99.42 |
98.94 |
+0.16 |
1K |
22 |
1.8B |
MCRI Dividend-Like Income Using Covered Calls
With MCRI at 98.94, 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% |
2.97 |
0.8 |
| 5% |
4.95 |
1.4 |
| 10% |
9.89 |
2.7 |
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 MCRI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
100.00 |
0.55 |
33 |
1.7 |
0.58 (0.6%) |
| Mar 20 |
100.00 |
3.60 |
96 |
3.8 |
0.58 (0.6%) |
| 5% Yield On MCRI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
100.00 |
0.55 |
33 |
1.7 |
0.58 (0.6%) |
| Mar 20 |
100.00 |
3.60 |
96 |
3.8 |
0.58 (0.6%) |
| 10% Yield On MCRI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 20 |
100.00 |
3.60 |
96 |
3.8 |
0.58 (0.6%) |
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