EBAY Dividend
Although EBAY has a dividend of 0.29 with an ex-dividend date of Aug 29, you can sell covered calls on eBay Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:30 PM ET):
| eBay Inc. (EBAY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 96.99 | 97.01 | 97.00 | +1.70 | 3.2M | 21 | 44B |
EBAY Dividend-Like Income Using Covered Calls
With EBAY at 97.00, 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% | 2.91 | 0.8 |
| 5% | 4.85 | 1.3 |
| 10% | 9.70 | 2.7 |
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 EBAY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 100.00 | 0.92 | 25 | 3.7 | 2.99 (3.1%) | |
| Sep 12 | 100.00 | 1.22 | 32 | 3.8 | 2.99 (3.1%) | |
| 5% Yield On EBAY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 100.00 | 0.92 | 25 | 3.7 | 2.99 (3.1%) | |
| Sep 12 | 100.00 | 1.22 | 32 | 3.8 | 2.99 (3.1%) | |
| 10% Yield On EBAY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 100.00 | 0.92 | 25 | 3.7 | 2.99 (3.1%) | |
| Sep 12 | 100.00 | 1.22 | 32 | 3.8 | 2.99 (3.1%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | MBX dividend | |
| 2. | SLV dividend | 7. | IBIT dividend | 2. | DLO dividend | |
| 3. | SPY dividend | 8. | GLD dividend | 3. | VSTM dividend | |
| 4. | IWM dividend | 9. | AMZN dividend | 4. | SPRY dividend | |
| 5. | INTC dividend | 10. | QQQ dividend | 5. | GLBE dividend | |
Want more examples? EB Dividend | EBC Dividend
