FWONK Dividend Type Payments

Although FWONK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LIBERTY MEDIA CORP SERIES C FORMULA ONE 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):

LIBERTY MEDIA CORP SERIES C FORMULA ONE (FWONK)
Bid Ask Last Change Volume P/E Market Cap
35.78 35.78 35.78 -0.58 1.4M 21 8.3B

FWONK Dividend-Like Income Using Covered Calls

With FWONK at 35.78, here's a table showing how big the annual "dividend" (ie. 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% 1.07 0.3
5% 1.79 0.5
10% 3.58 1.0

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
Jan 18 40.00 1.20 157 0.8 4.22 (11.8%)
5% Yield On FWONK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 40.00 1.20 157 0.8 4.22 (11.8%)

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Want more examples? FWONA Dividend | FWRD Dividend