Playtika Holding Corp (PLTK) shareholders can enhance their annualized dividend yield of 8.4% by selling a November covered call at the $5 strike, collecting a premium of 45 cents. This could yield an additional 21.3% rate of return, totaling 29.7% annualized if the stock isn’t called away. Currently priced at $4.79, PLTK shares must climb 4.6% for this option to be exercised, resulting in a 14% return at that level, plus any dividends earned before the call.
The trailing twelve-month volatility for Playtika is calculated at 46%, helping investors assess the risk of selling the covered call against potential upside loss. In mid-afternoon trading on Friday, S&P 500 options showed 1.08 million puts and 1.85 million calls, yielding a put:call ratio of 0.59, indicating a preference for call options.
