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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