FSLY Dividend Type Payments
Although FSLY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fastly, 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 Tue 4:16 PM ET):
| Fastly, Inc. Class A (FSLY) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 9.97 |
10.18 |
10.06 |
-0.52 |
3.1M |
- |
1.6B |
FSLY Dividend-Like Income Using Covered Calls
With FSLY at 10.06, 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% |
0.30 |
0.1 |
| 5% |
0.50 |
0.1 |
| 10% |
1.01 |
0.3 |
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 FSLY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 7 |
10.50 |
0.85 |
25 |
3.4 |
0.32 (3.2%) |
| Feb 14 |
10.50 |
0.83 |
4 |
20.8 |
0.32 (3.2%) |
| 5% Yield On FSLY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 7 |
10.50 |
0.85 |
25 |
3.4 |
0.32 (3.2%) |
| Feb 14 |
10.50 |
0.83 |
4 |
20.8 |
0.32 (3.2%) |
| 10% Yield On FSLY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 7 |
10.50 |
0.85 |
25 |
3.4 |
0.32 (3.2%) |
| Feb 14 |
10.50 |
0.83 |
4 |
20.8 |
0.32 (3.2%) |
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