DKNG Dividend Type Payments
Although DKNG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DraftKings 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 Wed 4:16 PM ET):
| DraftKings Inc. - Class A (DKNG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 41.80 |
41.92 |
41.82 |
+0.26 |
9.3M |
- |
36B |
DKNG Dividend-Like Income Using Covered Calls
With DKNG at 41.82, 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% |
1.25 |
0.3 |
| 5% |
2.09 |
0.6 |
| 10% |
4.18 |
1.1 |
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 DKNG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 3 |
42.00 |
2.18 |
3 |
72.7 |
0.08 (0.2%) |
| Jun 7 |
42.00 |
3.15 |
38 |
8.3 |
0.08 (0.2%) |
| 5% Yield On DKNG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 3 |
42.00 |
2.18 |
3 |
72.7 |
0.08 (0.2%) |
| Jun 7 |
42.00 |
3.15 |
38 |
8.3 |
0.08 (0.2%) |
| 10% Yield On DKNG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 3 |
42.00 |
2.18 |
3 |
72.7 |
0.08 (0.2%) |
| Jun 7 |
42.00 |
3.15 |
38 |
8.3 |
0.08 (0.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
