FROG Dividend Type Payments
Although FROG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JFrog Ltd. - Ordinary shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| JFrog Ltd. - Ordinary shares (FROG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 37.90 |
38.08 |
37.95 |
-0.58 |
854K |
- |
4.3B |
FROG Dividend-Like Income Using Covered Calls
With FROG at 37.95, 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% |
1.14 |
0.3 |
| 5% |
1.90 |
0.5 |
| 10% |
3.80 |
1.0 |
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 FROG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
40.00 |
1.25 |
53 |
2.4 |
1.92 (5.1%) |
| Oct 17 |
40.00 |
4.30 |
236 |
1.8 |
1.92 (5.1%) |
| 5% Yield On FROG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
40.00 |
1.25 |
53 |
2.4 |
1.92 (5.1%) |
| Oct 17 |
40.00 |
4.30 |
236 |
1.8 |
1.92 (5.1%) |
| 10% Yield On FROG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
40.00 |
1.25 |
53 |
2.4 |
1.92 (5.1%) |
| Oct 17 |
40.00 |
4.30 |
236 |
1.8 |
1.92 (5.1%) |
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