Cardinal Energy Ltd (Alberta) T.CJ

Call Options?

[Luckyguy777]

Generally I would rather get the dividends and own the stock so now that we have a 7% plus yield maybe options aren't good here but I do note that December 2022 options at $9 are only at $2.  That might be an easy play to get the next six months price increase (with maybe 2 dividend increases) for a cheaper price.  If I am thinking of it right, the stock only needs to hit $11 sometime between now and Dec for that option buy to work.  Looking at the same thing on some others that are expecting to announce more share buybacks or dividend increases.  Maybe CPG or MEG.

Is anyone else considering this?

[caretired1]

I personally prefer paying less time premium. I like the august 7's. It's past the next reporting date so you should get lift off the news if oil stays high. And against current share price, the time premium is about $.60 so for me it's a better deal and you get similar leverage - not quite as much as you spend $2.60 ish per contract vs $2 but still good.  I used the May 20 $6'