Shareholders of eXp World Holdings Inc (Symbol: EXPI) seeking to enhance their income beyond the stock’s current 1.8% annualized dividend yield have an intriguing option. By selling the March 2026 covered call at the $12.50 strike price, investors can collect a premium based on the $1.00 bid. This strategy annualizes to an impressive additional 18.9% rate of return against the current stock price. At Stock Options Channel, we refer to this as the YieldBoost, which brings the total potential annualized return to 20.8%, assuming the stock is not called away.
However, it’s important to note that any upside beyond $12.50 would be forfeited if the stock rises and is called away. For this to occur, EXPI shares would need to increase by 13.5% from current levels. In the scenario where the stock is called, shareholders would still earn a substantial 22.6% return from this trading level, in addition to any dividends collected prior to the stock being called.
Dividend amounts can often be unpredictable, fluctuating with the company’s profitability. For eXp World Holdings Inc, examining the dividend history chart for EXPI below can provide insights into whether the most recent dividend is likely to continue, thus helping to assess the reasonableness of expecting a 1.8% annualized dividend yield.
Below is a chart showcasing EXPI’s trailing twelve-month trading history, with the $12.50 strike highlighted in red:
The chart above, along with the stock’s historical volatility, serves as a valuable guide when combined with fundamental analysis. This approach helps determine whether selling the March 2026 covered call at the $12.50 strike offers a favorable reward for the risk of potentially giving away upside beyond that price. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve-month volatility for eXp World Holdings Inc, considering the last 250 trading day closing values along with today’s price of $11.03, to be 49%. For additional call options contract ideas across various available expirations, visit the EXPI Stock Options page on StockOptionsChannel.com.
In mid-afternoon trading on Friday, the put volume among S&P 500 components reached 1.02 million contracts, while call volume stood at 2.29 million, resulting in a put:call ratio of 0.44 for the day. Compared to the long-term median put:call ratio of 0.65, this indicates a significantly higher call volume relative to puts. In essence, buyers are favoring calls in options trading today. Find out which 15 call and put options traders are discussing today.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
