UBOT Dividend Type Payments
Although UBOT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull (UBOT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 25.30 |
26.65 |
26.47 |
+0.17 |
23K |
- |
0.0B |
UBOT Dividend-Like Income Using Covered Calls
With UBOT at 26.47, 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% |
0.79 |
0.2 |
| 5% |
1.32 |
0.4 |
| 10% |
2.65 |
0.7 |
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 UBOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
29.00 |
0.05 |
12 |
0.4 |
2.35 (8.9%) |
| May 15 |
27.00 |
1.70 |
159 |
1.1 |
0.35 (1.3%) |
| 5% Yield On UBOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
29.00 |
0.05 |
12 |
0.4 |
2.35 (8.9%) |
| May 15 |
27.00 |
1.70 |
159 |
1.1 |
0.35 (1.3%) |
| 10% Yield On UBOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
27.00 |
1.70 |
159 |
1.1 |
0.35 (1.3%) |
| Jan 16 |
27.00 |
0.30 |
40 |
0.8 |
0.35 (1.3%) |
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