API Dividend Type Payments
Although API has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Agora, Inc. - ADS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Agora, Inc. - ADS (API) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 3.88 |
3.98 |
3.90 |
-0.05 |
482K |
232 |
0.4B |
API Dividend-Like Income Using Covered Calls
With API at 3.90, 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% |
0.12 |
0.0 |
| 5% |
0.20 |
0.1 |
| 10% |
0.39 |
0.1 |
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 API Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 20 |
5.00 |
0.30 |
94 |
0.3 |
1.02 (26.2%) |
| 5% Yield On API Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 20 |
5.00 |
0.30 |
94 |
0.3 |
1.02 (26.2%) |
| 10% Yield On API Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 20 |
5.00 |
0.30 |
94 |
0.3 |
1.02 (26.2%) |
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