APP Dividend Type Payments
Although APP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Applovin Corporation - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:30 AM ET):
| Applovin Corporation - Class A (APP) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 442.79 |
443.49 |
443.25 |
-29.67 |
3.1M |
58 |
160B |
APP Dividend-Like Income Using Covered Calls
With APP at 443.25, 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% |
13.30 |
3.6 |
| 5% |
22.16 |
6.1 |
| 10% |
44.33 |
12.1 |
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 APP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
442.50 |
31.80 |
3 |
1,027.0 |
0.00 (0.0%) |
| Feb 20 |
442.50 |
36.90 |
10 |
359.1 |
0.00 (0.0%) |
| 5% Yield On APP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
442.50 |
31.80 |
3 |
1,027.0 |
0.00 (0.0%) |
| Feb 20 |
442.50 |
36.90 |
10 |
359.1 |
0.00 (0.0%) |
| 10% Yield On APP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
442.50 |
31.80 |
3 |
1,027.0 |
0.00 (0.0%) |
| Feb 20 |
442.50 |
36.90 |
10 |
359.1 |
0.00 (0.0%) |
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