TTD Dividend Type Payments
Although TTD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The Trade Desk, 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):
| The Trade Desk, Inc. - Class A (TTD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 124.42 |
124.97 |
124.42 |
+3.58 |
3.0M |
195 |
60B |
TTD Dividend-Like Income Using Covered Calls
With TTD at 124.42, 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% |
3.73 |
1.0 |
| 5% |
6.22 |
1.7 |
| 10% |
12.44 |
3.4 |
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 TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 7 |
125.00 |
3.65 |
22 |
16.6 |
0.03 (0.0%) |
| Feb 14 |
125.00 |
7.70 |
29 |
26.6 |
0.03 (0.0%) |
| 5% Yield On TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 7 |
125.00 |
3.65 |
22 |
16.6 |
0.03 (0.0%) |
| Feb 14 |
125.00 |
7.70 |
29 |
26.6 |
0.03 (0.0%) |
| 10% Yield On TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 7 |
125.00 |
3.65 |
22 |
16.6 |
0.03 (0.0%) |
| Feb 14 |
125.00 |
7.70 |
29 |
26.6 |
0.03 (0.0%) |
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