RSI Dividend Type Payments
Although RSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rush Street Interactive, 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):
| Rush Street Interactive, Inc. Class A (RSI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 10.98 |
11.20 |
11.13 |
-0.28 |
2.2M |
- |
2.7B |
RSI Dividend-Like Income Using Covered Calls
With RSI at 11.13, 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% |
0.33 |
0.1 |
| 5% |
0.56 |
0.2 |
| 10% |
1.11 |
0.3 |
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 RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
12.50 |
0.10 |
36 |
0.3 |
1.30 (11.7%) |
| Jan 17 |
12.50 |
0.40 |
64 |
0.6 |
1.30 (11.7%) |
| 5% Yield On RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
12.50 |
0.10 |
36 |
0.3 |
1.30 (11.7%) |
| Jan 17 |
12.50 |
0.40 |
64 |
0.6 |
1.30 (11.7%) |
| 10% Yield On RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
12.50 |
0.40 |
64 |
0.6 |
1.30 (11.7%) |
| Apr 17 |
12.50 |
1.10 |
154 |
0.7 |
1.30 (11.7%) |
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