DDOG Dividend Type Payments

Although DDOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Datadog, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:05 AM ET):

Datadog, Inc. - Class A (DDOG)
Bid Ask Last Change Volume P/E Market Cap
142.24 142.38 142.29 +3.13 1.0M 265 44B

DDOG Dividend-Like Income Using Covered Calls

With DDOG at 142.29, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 4.27 1.2
5% 7.11 1.9
10% 14.23 3.9

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On DDOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 142.00 5.00 24 19.3 0.00 (0.0%)
Feb 14 142.00 7.25 31 22.2 0.00 (0.0%)
5% Yield On DDOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 142.00 5.00 24 19.3 0.00 (0.0%)
Feb 14 142.00 7.25 31 22.2 0.00 (0.0%)
10% Yield On DDOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 142.00 5.00 24 19.3 0.00 (0.0%)
Feb 14 142.00 7.25 31 22.2 0.00 (0.0%)

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