JJGB Dividend Type Payments

Although JJGB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IPATH SER B BLOOMBERG GRAINS SUBINDEX TOTAL RETURN to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 3:30 PM ET):

IPATH SER B BLOOMBERG GRAINS SUBINDEX TOTAL RETURN (JJGB)
Bid Ask Last Change Volume P/E Market Cap
47.65 47.83 47.85 -0.47 1K - 0.0B

JJGB Dividend-Like Income Using Covered Calls

With JJGB at 47.85, 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% 1.44 0.4
5% 2.39 0.7
10% 4.79 1.3

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 JJGB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 50.00 0.20 30 0.7 2.17 (4.5%)
Jan 18 52.00 0.40 93 0.4 4.17 (8.7%)
5% Yield On JJGB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 50.00 0.20 30 0.7 2.17 (4.5%)
Jan 18 50.00 0.75 93 0.8 2.17 (4.5%)
10% Yield On JJGB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 48.00 0.65 30 2.2 0.17 (0.4%)
Jan 18 48.00 1.35 93 1.5 0.17 (0.4%)

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