FWONA Dividend Type Payments
Although FWONA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Media Corporation - Series A Liberty Formula One 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):
| Liberty Media Corporation - Series A Liberty Formula One (FWONA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 71.13 |
77.91 |
75.10 |
-0.02 |
64K |
- |
50B |
FWONA Dividend-Like Income Using Covered Calls
With FWONA at 75.10, 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% |
2.25 |
0.6 |
| 5% |
3.76 |
1.0 |
| 10% |
7.51 |
2.1 |
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 FWONA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
80.00 |
0.75 |
26 |
2.9 |
2.09 (2.8%) |
| Oct 17 |
80.00 |
3.10 |
180 |
1.7 |
2.09 (2.8%) |
| 5% Yield On FWONA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
80.00 |
0.75 |
26 |
2.9 |
2.09 (2.8%) |
| Oct 17 |
80.00 |
3.10 |
180 |
1.7 |
2.09 (2.8%) |
| 10% Yield On FWONA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
80.00 |
0.75 |
26 |
2.9 |
2.09 (2.8%) |
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