Grow Your Income: Exploring Options with MillerKnoll Inc.
Investors Can Consider Covered Calls for Enhanced Returns
Shareholders of MillerKnoll Inc (Symbol: MLKN) aiming to increase their earnings beyond the stock’s current 3.4% annualized dividend yield should explore selling the August 2025 covered call option at the $25 strike price. By doing so, they can earn a premium based on the $1.35 bid, which translates to an annualized return of 9.5% against the current stock price. This strategy, known as the YieldBoost, allows shareholders to potentially achieve a total annualized return of 12.9% if the stock remains uncalled.
Should MillerKnoll’s stock price climb above $25, shareholders would forfeit any gains above that mark. However, reaching that threshold requires a 12.2% increase from its current level. Even if the stock is called, shareholders would benefit from an 18.2% return from this trading level, plus any dividends received before the sale.
Dividend payouts are not always consistent, as they often fluctuate based on a company’s profitability. Analyzing the dividend history chart for MillerKnoll Inc, illustrated below, can assist investors in evaluating the likelihood of maintaining the current 3.4% annualized dividend yield.
Below is a chart showing MLKN’s trailing twelve-month trading history, with the $25 strike highlighted in red:
The above chart, in conjunction with the stock’s historical volatility, can provide valuable insights. Evaluating whether to sell the August 2025 covered call option at the $25 strike entails weighing the potential rewards against the risks of relinquishing any upside beyond that price. Currently, MillerKnoll Inc’s trailing twelve-month volatility is calculated at 42%, based on the last 251 trading days as well as today’s price of $22.36. For additional call option ideas with various expirations, check out the MLKN Stock Options page at StockOptionsChannel.com.
In mid-afternoon trading on Thursday, the S&P 500 components reflected a put volume of 709,347 contracts with call volume at 1.43 million, giving a put:call ratio of 0.50. Compared to the long-term median put:call ratio of 0.65, this indicates a significant preference for call options among traders today.
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Also consider:
• SMTX shares outstanding history
• ETFs Holding ALLY
• Institutional Holders of OINK
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
