BOTZ Dividend Type Payments
Although BOTZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Robotics & Artificial Intelligence ETF 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):
| Global X Robotics & Artificial Intelligence ETF (BOTZ) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 34.00 |
34.40 |
34.37 |
-0.09 |
640K |
- |
2.9B |
BOTZ Dividend-Like Income Using Covered Calls
With BOTZ at 34.37, 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% |
1.03 |
0.3 |
| 5% |
1.72 |
0.5 |
| 10% |
3.44 |
0.9 |
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 BOTZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
36.00 |
0.25 |
31 |
0.8 |
1.60 (4.7%) |
| Dec 19 |
35.00 |
1.25 |
94 |
1.3 |
0.60 (1.7%) |
| 5% Yield On BOTZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
36.00 |
0.25 |
31 |
0.8 |
1.60 (4.7%) |
| Dec 19 |
35.00 |
1.25 |
94 |
1.3 |
0.60 (1.7%) |
| 10% Yield On BOTZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
35.00 |
1.25 |
94 |
1.3 |
0.60 (1.7%) |
| Jan 16 |
35.00 |
1.55 |
122 |
1.3 |
0.60 (1.7%) |
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