Playtika’s Income Options: Maximizing Returns with Covered Calls

Shareholders of Playtika Holding Corp (Symbol: PLTK) can enhance their income beyond the company’s 8.6% annualized dividend yield. By selling the May covered call at the $5 strike, investors can collect a premium based on the 20 cents bid. This strategy could annualize to an additional 24.9% rate of return against the current stock price, leading to a total potential return of 33.5% annually if the stock is not called away. However, if the stock rises above $5 and is called away, shareholders would lose any upside beyond that price. Given that PLTK shares must increase by 7.3% for this to occur, even in this scenario, investors would still earn an 11.6% return from the trading level alongside any dividends accrued before the stock was called.

Dividend payouts can be unpredictable and often fluctuate in line with the company’s profitability. For shareholders considering the sustainability of Playtika’s dividend, reviewing the dividend history chart for PLTK below may provide insights into the likelihood of continued payouts, supporting expectations around the 8.6% annualized dividend yield.

The chart below illustrates PLTK’s trailing twelve months of trading history, highlighting the $5 strike in red:

This chart, along with the stock‘s historical volatility, serves as a valuable tool. Combining it with fundamental analysis allows investors to assess whether selling the May covered call at the $5 strike offers an acceptable trade-off between potential rewards and the risk of capping any upsides. PLTK’s trailing twelve-month volatility, calculated using the last 250 trading days’ closing values, stands at 38%. For additional call option ideas across different expiration dates, visit the PLTK Stock Options page on StockOptionsChannel.com.

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Also see:

• Institutional Holders of LRGG
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• IIIV YTD Return

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.