FWONK Dividend Type Payments
Although FWONK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Media Corporation - Series C Liberty Formula One to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:55 PM ET):
| Liberty Media Corporation - Series C Liberty Formula One (FWONK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 98.63 |
98.79 |
98.70 |
+1.16 |
402K |
- |
65B |
FWONK Dividend-Like Income Using Covered Calls
With FWONK at 98.70, 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% |
2.96 |
0.8 |
| 5% |
4.94 |
1.4 |
| 10% |
9.87 |
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 FWONK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
100.00 |
2.45 |
60 |
4.1 |
1.21 (1.2%) |
| Jul 18 |
100.00 |
2.15 |
32 |
6.7 |
1.21 (1.2%) |
| 5% Yield On FWONK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
100.00 |
2.45 |
60 |
4.1 |
1.21 (1.2%) |
| Jul 18 |
100.00 |
2.15 |
32 |
6.7 |
1.21 (1.2%) |
| 10% Yield On FWONK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
100.00 |
2.45 |
60 |
4.1 |
1.21 (1.2%) |
| Jul 18 |
100.00 |
2.15 |
32 |
6.7 |
1.21 (1.2%) |
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