OKTA Dividend Type Payments
Although OKTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Okta, 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):
| Okta, Inc. - Class A (OKTA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 91.40 |
91.72 |
91.56 |
-2.85 |
3.0M |
130 |
17B |
OKTA Dividend-Like Income Using Covered Calls
With OKTA at 91.56, 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% |
2.75 |
0.8 |
| 5% |
4.58 |
1.3 |
| 10% |
9.16 |
2.5 |
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 OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
0.49 |
22 |
2.2 |
8.28 (9.0%) |
| Aug 8 |
100.00 |
0.80 |
29 |
2.8 |
8.28 (9.0%) |
| 5% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
0.49 |
22 |
2.2 |
8.28 (9.0%) |
| Aug 8 |
100.00 |
0.80 |
29 |
2.8 |
8.28 (9.0%) |
| 10% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
92.00 |
2.59 |
22 |
11.8 |
0.28 (0.3%) |
| Aug 8 |
100.00 |
0.80 |
29 |
2.8 |
8.28 (9.0%) |
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