LIT Dividend Type Payments
Although LIT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Lithium & Battery Tech ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:35 PM ET):
| Global X Lithium & Battery Tech ETF (LIT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 70.12 | 70.41 | 70.31 | +0.36 | 342K | - | 1.7B |
LIT Dividend-Like Income Using Covered Calls
With LIT at 70.31, 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% | 2.11 | 0.6 |
| 5% | 3.52 | 1.0 |
| 10% | 7.03 | 1.9 |
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 LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 75.00 | 2.30 | 75 | 3.1 | 4.59 (6.5%) | |
| Jul 17 | 71.00 | 5.60 | 166 | 3.4 | 0.59 (0.8%) | |
| 5% Yield On LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 75.00 | 2.30 | 75 | 3.1 | 4.59 (6.5%) | |
| Jul 17 | 71.00 | 5.60 | 166 | 3.4 | 0.59 (0.8%) | |
| 10% Yield On LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 75.00 | 2.30 | 75 | 3.1 | 4.59 (6.5%) | |
| Jul 17 | 71.00 | 5.60 | 166 | 3.4 | 0.59 (0.8%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | LITE dividend | |
| 2. | NVDA dividend | 7. | EWZ dividend | 2. | RBLX dividend | |
| 3. | KWEB dividend | 8. | SPY dividend | 3. | BE dividend | |
| 4. | GLD dividend | 9. | INTC dividend | 4. | USAR dividend | |
| 5. | IBIT dividend | 10. | CORZ dividend | 5. | CIFR dividend | |
Want more examples? LION Dividend | LITE Dividend
