HUYA Dividend
Although HUYA has a dividend of 0.66 with an ex-dividend date of May 9, you can sell covered calls on HUYA Inc. American depositary shares, each representing one Class A ord 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):
HUYA Inc. American depositary shares, each representing one Class A ord (HUYA) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
4.38 |
4.42 |
4.38 |
-0.03 |
1.3M |
- |
0.0B |
HUYA Dividend-Like Income Using Covered Calls
With HUYA at 4.38, 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% |
0.13 |
0.0 |
5% |
0.22 |
0.1 |
10% |
0.44 |
0.1 |
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 HUYA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
5.00 |
0.05 |
22 |
0.2 |
0.58 (13.2%) |
Jun 21 |
5.00 |
0.15 |
57 |
0.3 |
0.58 (13.2%) |
5% Yield On HUYA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
5.00 |
0.05 |
22 |
0.2 |
0.58 (13.2%) |
Jun 21 |
5.00 |
0.15 |
57 |
0.3 |
0.58 (13.2%) |
10% Yield On HUYA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
5.00 |
0.05 |
22 |
0.2 |
0.58 (13.2%) |
Jun 21 |
5.00 |
0.15 |
57 |
0.3 |
0.58 (13.2%) |
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