DDOG Dividend Type Payments
Although DDOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Datadog, Inc. - Class A 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):
| Datadog, Inc. - Class A (DDOG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 137.22 |
138.47 |
137.48 |
-0.46 |
1.5M |
406 |
45B |
DDOG Dividend-Like Income Using Covered Calls
With DDOG at 137.48, 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% |
4.12 |
1.1 |
| 5% |
6.87 |
1.9 |
| 10% |
13.75 |
3.8 |
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 DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
138.00 |
0.68 |
4 |
5.3 |
0.00 (0.0%) |
| Feb 6 |
138.00 |
4.90 |
39 |
11.4 |
0.00 (0.0%) |
| 5% Yield On DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
138.00 |
0.68 |
4 |
5.3 |
0.00 (0.0%) |
| Feb 6 |
138.00 |
4.90 |
39 |
11.4 |
0.00 (0.0%) |
| 10% Yield On DDOG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
138.00 |
0.68 |
4 |
5.3 |
0.00 (0.0%) |
| Feb 6 |
138.00 |
4.90 |
39 |
11.4 |
0.00 (0.0%) |
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