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Creating a 74% “Dividend” on CRWV Stock Using Options
Yahoo Finance· 2025-09-16 11:00
Group 1 - CoreWeave (CRWV) stock has recently broken above the 50-day moving average, indicating positive accumulation on the breakout [1] - CoreWeave Inc. is identified as a cloud-computing company [8] Group 2 - The stock does not pay a dividend, but an investment strategy using options can generate a significant annualized return of 74% [2][3] - Selling a December 19, 2025 put with a strike price of $120 can yield approximately $1,940 in option premium over three months [2] - The breakeven price for this strategy is calculated at $100.60, meaning losses occur if the stock price falls below this level [4] Group 3 - Cash secured puts are considered a bullish strategy, though they offer limited potential gains compared to owning the stock directly [5] - The $120-strike put has a delta of 40, providing exposure roughly equivalent to owning 40 shares of CRWV stock [6] - There is a 60% chance that the put will expire worthless, indicating a favorable risk-reward scenario [6] Group 4 - A method to reduce risk involves creating a bull put spread by purchasing a $100-strike put, which lowers the risk from $10,060 to around $2,000 [7]