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 Fri 4:16 PM ET):
| JFrog Ltd. - Ordinary shares (FROG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 64.05 |
66.87 |
66.81 |
+1.09 |
2.4M |
- |
7.8B |
FROG Dividend-Like Income Using Covered Calls
With FROG at 66.81, 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% |
2.00 |
0.5 |
| 5% |
3.34 |
0.9 |
| 10% |
6.68 |
1.8 |
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 |
| May 15 |
100.00 |
1.05 |
148 |
0.7 |
33.13 (49.6%) |
| Jan 16 |
67.50 |
2.50 |
29 |
8.6 |
0.63 (0.9%) |
| 5% Yield On FROG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
67.50 |
8.50 |
148 |
5.7 |
0.63 (0.9%) |
| Jan 16 |
67.50 |
2.50 |
29 |
8.6 |
0.63 (0.9%) |
| 10% Yield On FROG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
67.50 |
8.50 |
148 |
5.7 |
0.63 (0.9%) |
| Jan 16 |
67.50 |
2.50 |
29 |
8.6 |
0.63 (0.9%) |
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