REE Dividend Type Payments
Although REE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on REE Automotive Ltd. - Class A Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| REE Automotive Ltd. - Class A Ordinary Shares (REE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.60 |
10.25 |
9.00 |
+0.71 |
93K |
- |
0.1B |
REE Dividend-Like Income Using Covered Calls
With REE at 9.00, 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% |
0.27 |
0.1 |
| 5% |
0.45 |
0.1 |
| 10% |
0.90 |
0.2 |
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 REE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
0.35 |
233 |
0.2 |
2.25 (25.0%) |
| May 16 |
12.50 |
0.70 |
142 |
0.5 |
2.25 (25.0%) |
| 5% Yield On REE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
0.35 |
233 |
0.2 |
2.25 (25.0%) |
| May 16 |
12.50 |
0.70 |
142 |
0.5 |
2.25 (25.0%) |
| 10% Yield On REE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
12.50 |
0.70 |
142 |
0.5 |
2.25 (25.0%) |
| Jan 17 |
12.50 |
0.10 |
23 |
0.4 |
2.25 (25.0%) |
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