JACK Dividend Type Payments

Although JACK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Jack In The Box Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:45 AM ET):

Jack In The Box Inc. (JACK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
40.68	40.84	40.79	-0.23	43K	-	0.8B

JACK Dividend-Like Income Using Covered Calls

With JACK at 40.79, 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%	1.22	0.3
5%	2.04	0.6
10%	4.08	1.1

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 JACK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	42.50	6.10	255	2.4	1.66 (4.1%)
Sep 19	42.50	5.60	227	2.5	1.66 (4.1%)

5% Yield On JACK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	42.50	6.10	255	2.4	1.66 (4.1%)
Sep 19	42.50	5.60	227	2.5	1.66 (4.1%)

10% Yield On JACK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	42.50	6.10	255	2.4	1.66 (4.1%)
Sep 19	42.50	5.60	227	2.5	1.66 (4.1%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Feb 21 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	TSLA dividend	1.	SYM dividend
2.	TLT dividend	7.	QQQ dividend	2.	AFRM dividend
3.	SPY dividend	8.	SLV dividend	3.	BILL dividend
4.	IWM dividend	9.	GLD dividend	4.	NET dividend
5.	FXI dividend	10.	KWEB dividend	5.	RCAT dividend

Want more examples? JAAA Dividend | JADE Dividend