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 Thu 11:05 AM ET):
| DraftKings Inc. - Class A (DKNG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 41.43 |
41.46 |
41.45 |
-0.20 |
1.1M |
- |
37B |
DKNG Dividend-Like Income Using Covered Calls
With DKNG at 41.45, 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% |
1.24 |
0.3 |
| 5% |
2.07 |
0.6 |
| 10% |
4.15 |
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 |
| Dec 20 |
41.50 |
0.99 |
9 |
11.0 |
0.04 (0.1%) |
| Dec 27 |
41.50 |
1.25 |
16 |
7.8 |
0.04 (0.1%) |
| 5% Yield On DKNG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
41.50 |
0.99 |
9 |
11.0 |
0.04 (0.1%) |
| Dec 27 |
41.50 |
1.25 |
16 |
7.8 |
0.04 (0.1%) |
| 10% Yield On DKNG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
41.50 |
0.99 |
9 |
11.0 |
0.04 (0.1%) |
| Dec 27 |
41.50 |
1.25 |
16 |
7.8 |
0.04 (0.1%) |
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