Playtika Offers 33.5% YieldBoost with Covered Calls

Playtika Holding Corp provides an attractive investment opportunity. Shareholders can enhance their returns with the upcoming covered call strategy ready to yield a 33.5% annualized rate, alongside the existing 8.6% dividend yield.

Date: 14-03-2025

AI Rating: 7

Investment Opportunity: Playtika Holding Corp (PLTK) offers shareholders a strategy to boost their income through a May covered call at a $5 strike price. The premium is currently at 20 cents per share, translating to a potential annualized yield of 24.9%. This rate, combined with the existing 8.6% dividend yield, offers a total annualized return of 33.5% if the stock isn’t called away.

Dividend Expectations: Despite the enticing yield, it is crucial to consider that dividends are not guaranteed and can be volatile based on the company’s profitability. The report mentions observing the dividend history to see if the 8.6% yield can be sustained.

Potential Upside Loss: The risk factor is the loss of any upside if the stock exceeds $5 and is called away. However, even if called, investors can still gain an 11.6% return from the stock’s current trading level in addition to the dividends collected beforehand.

Volatility Considerations: PLTK's last twelve-month trading history indicates a volatility of 38%, a figure stakeholders should bear in mind when deciding to engage in this investment strategy. The historical chart serves as a useful reference alongside fundamental analysis to judge whether the covered call strategy offers sufficient reward for the associated risk.

Stocks: PLTK