APA Dividend

Although APA has a dividend of 0.25 with an ex-dividend date of Jul 22, you can sell covered calls on APA Corporation 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):

APA Corporation (APA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
20.04	20.30	19.97	-0.34	13.4M	7.3	7.3B

APA Dividend-Like Income Using Covered Calls

With APA at 19.97, 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%	0.60	0.2
5%	1.00	0.3
10%	2.00	0.5

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 APA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 3	20.50	0.44	14	3.1	0.20 (1.0%)
Jul 11	20.50	0.21	22	1.0	0.20 (1.0%)

5% Yield On APA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 3	20.50	0.44	14	3.1	0.20 (1.0%)
Jul 11	20.50	0.21	22	1.0	0.20 (1.0%)

10% Yield On APA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 3	20.50	0.44	14	3.1	0.20 (1.0%)
Jul 11	20.50	0.21	22	1.0	0.20 (1.0%)

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Top 10 Open Interest For Jul 18 Expiration				Top 5 High Yield
1.	SLV dividend	6.	TSLA dividend	1.	ALT dividend
2.	NVDA dividend	7.	IWM dividend	2.	COGT dividend
3.	SPY dividend	8.	FXI dividend	3.	BBAI dividend
4.	GLD dividend	9.	AAPL dividend	4.	RUN dividend
5.	TLT dividend	10.	CLSK dividend	5.	CELC dividend

Want more examples? AP Dividend | APAM Dividend