RRR Dividend Type Payments
Although RRR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Red Rock Resorts, 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 Thu 4:16 PM ET):
| Red Rock Resorts, Inc. - Class A (RRR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.00 | 41.62 | 40.70 | -0.06 | 434K | 16 | 4.3B |
RRR Dividend-Like Income Using Covered Calls
With RRR at 40.70, 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% | 4.07 | 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 RRR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 45.00 | 0.70 | 30 | 2.3 | 3.38 (8.3%) | |
| Oct 17 | 45.00 | 3.10 | 184 | 1.7 | 3.38 (8.3%) | |
| 5% Yield On RRR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 45.00 | 0.70 | 30 | 2.3 | 3.38 (8.3%) | |
| Oct 17 | 45.00 | 3.10 | 184 | 1.7 | 3.38 (8.3%) | |
| 10% Yield On RRR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 45.00 | 0.70 | 30 | 2.3 | 3.38 (8.3%) | |
| Oct 17 | 45.00 | 3.10 | 184 | 1.7 | 3.38 (8.3%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | STLA dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | NBIS dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | HOOD dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend | |
Want more examples? RRGB Dividend | RS Dividend
