MCRI Dividend Type Payments

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

MONARCH CASINO & RESORT (MCRI)
Bid Ask Last Change Volume P/E Market Cap
42.08 47.02 47.02 +0.45 29K 28 0.8B

MCRI Dividend-Like Income Using Covered Calls

With MCRI at 47.02, 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% 1.41 0.4
5% 2.35 0.6
10% 4.70 1.3

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
Sep 21 50.00 0.15 33 0.5 2.98 (6.3%)
Oct 19 50.00 0.50 61 0.8 2.98 (6.3%)
5% Yield On MCRI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 50.00 0.50 61 0.8 2.98 (6.3%)
Dec 21 50.00 1.05 124 0.8 2.98 (6.3%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.MOMO dividend
3.SPX dividend 8.FB dividend   3.UVXY dividend
4.QQQ dividend 9.IWM dividend   4.AKRX dividend
5.XLF dividend 10.GDX dividend   5.LB dividend

Want more examples? MCRB Dividend | MCRN Dividend