How To YieldBoost Playtika Holding To 29.7% Using Options

Shareholders of Playtika Holding Corp (PLTK) looking to boost their income beyond the stock's 8.4% annualized dividend yield can sell the November covered call at the $5 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 21.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 29.7% annualized rate in the scenario where the stock is not called away. Any upside above $5 would be lost if the stock rises there and is called away, but PLTK shares would have to climb 4.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 14% return from this trading level, in addition to any dividends collected before the stock was called.