YieldBoost Caledonia Mining From 3.8% To 27.4% Using Options

Shareholders of Caledonia Mining Corporation PLC (CMCL) looking to boost their income beyond the stock's 3.8% annualized dividend yield can sell the March 2025 covered call at the $15 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 23.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 27.4% annualized rate in the scenario where the stock is not called away. Any upside above $15 would be lost if the stock rises there and is called away, but CMCL shares would have to advance 3.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 14.8% return from this trading level, in addition to any dividends collected before the stock was called.