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 |
27.59 |
30.90 |
29.25 |
-0.72 |
262K |
- |
0.8B |
CSTL Dividend-Like Income Using Covered Calls
With CSTL at 29.25, 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% |
0.88 |
0.2 |
5% |
1.46 |
0.4 |
10% |
2.93 |
0.8 |
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 |
Nov 15 |
35.00 |
0.80 |
53 |
1.5 |
4.10 (14.0%) |
Oct 18 |
35.00 |
0.40 |
25 |
1.6 |
4.10 (14.0%) |
5% Yield On CSTL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
35.00 |
0.80 |
53 |
1.5 |
4.10 (14.0%) |
Oct 18 |
35.00 |
0.40 |
25 |
1.6 |
4.10 (14.0%) |
10% Yield On CSTL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
35.00 |
0.80 |
53 |
1.5 |
4.10 (14.0%) |
Oct 18 |
35.00 |
0.40 |
25 |
1.6 |
4.10 (14.0%) |
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