NTNX Dividend Type Payments
Although NTNX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nutanix, 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 Fri 4:16 PM ET):
| Nutanix, Inc. - Class A (NTNX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 68.00 |
71.18 |
69.53 |
-1.56 |
1.8M |
- |
54B |
NTNX Dividend-Like Income Using Covered Calls
With NTNX at 69.53, 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% |
2.09 |
0.6 |
| 5% |
3.48 |
1.0 |
| 10% |
6.95 |
1.9 |
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 NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
72.50 |
3.20 |
36 |
8.9 |
1.32 (1.9%) |
| Jan 17 |
72.50 |
4.00 |
64 |
6.3 |
1.32 (1.9%) |
| 5% Yield On NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
72.50 |
3.20 |
36 |
8.9 |
1.32 (1.9%) |
| Jan 17 |
72.50 |
4.00 |
64 |
6.3 |
1.32 (1.9%) |
| 10% Yield On NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
72.50 |
3.20 |
36 |
8.9 |
1.32 (1.9%) |
| Jan 17 |
72.50 |
4.00 |
64 |
6.3 |
1.32 (1.9%) |
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