AMBA Dividend Type Payments
Although AMBA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ambarella, Inc. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Ambarella, Inc. - Ordinary Shares (AMBA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 65.00 |
66.50 |
66.26 |
+1.01 |
617K |
- |
2.8B |
AMBA Dividend-Like Income Using Covered Calls
With AMBA at 66.26, 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% |
1.99 |
0.5 |
| 5% |
3.31 |
0.9 |
| 10% |
6.63 |
1.8 |
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 AMBA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
67.00 |
0.35 |
4 |
8.8 |
0.50 (0.8%) |
| Feb 20 |
67.00 |
1.70 |
11 |
15.5 |
0.50 (0.8%) |
| 5% Yield On AMBA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
67.00 |
0.35 |
4 |
8.8 |
0.50 (0.8%) |
| Feb 20 |
67.00 |
1.70 |
11 |
15.5 |
0.50 (0.8%) |
| 10% Yield On AMBA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
67.00 |
0.35 |
4 |
8.8 |
0.50 (0.8%) |
| Feb 20 |
67.00 |
1.70 |
11 |
15.5 |
0.50 (0.8%) |
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