FROG Dividend Type Payments
Although FROG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JFrog Ltd. - Ordinary shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
JFrog Ltd. - Ordinary shares (FROG) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
39.30 |
41.50 |
39.89 |
+0.17 |
546K |
- |
4.2B |
FROG Dividend-Like Income Using Covered Calls
With FROG at 39.89, 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% |
1.20 |
0.3 |
5% |
1.99 |
0.5 |
10% |
3.99 |
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 FROG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
42.50 |
1.60 |
15 |
10.7 |
1.00 (2.5%) |
Sep 20 |
42.50 |
3.70 |
141 |
2.6 |
1.00 (2.5%) |
5% Yield On FROG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
42.50 |
1.60 |
15 |
10.7 |
1.00 (2.5%) |
Sep 20 |
42.50 |
3.70 |
141 |
2.6 |
1.00 (2.5%) |
10% Yield On FROG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
42.50 |
1.60 |
15 |
10.7 |
1.00 (2.5%) |
Sep 20 |
42.50 |
3.70 |
141 |
2.6 |
1.00 (2.5%) |
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