FUTU Dividend Type Payments
Although FUTU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Futu Holdings Limited - American Depositary Shares 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):
| Futu Holdings Limited - American Depositary Shares (FUTU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 177.12 |
177.25 |
177.07 |
-3.25 |
661K |
161 |
2.0B |
FUTU Dividend-Like Income Using Covered Calls
With FUTU at 177.07, 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% |
5.31 |
1.5 |
| 5% |
8.85 |
2.4 |
| 10% |
17.71 |
4.9 |
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 FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
180.00 |
7.20 |
31 |
23.2 |
2.75 (1.6%) |
| Jan 9 |
177.50 |
1.76 |
3 |
58.7 |
0.25 (0.1%) |
| 5% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
180.00 |
7.20 |
31 |
23.2 |
2.75 (1.6%) |
| Jan 9 |
177.50 |
1.76 |
3 |
58.7 |
0.25 (0.1%) |
| 10% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
180.00 |
7.20 |
31 |
23.2 |
2.75 (1.6%) |
| Jan 9 |
177.50 |
1.76 |
3 |
58.7 |
0.25 (0.1%) |
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