MMTM Dividend Type Payments
Although MMTM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street SPDR S&P 1500 Momentum Tilt ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:35 AM ET):
| State Street SPDR S&P 1500 Momentum Tilt ETF (MMTM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 292.93 |
293.22 |
292.90 |
-2.42 |
1K |
- |
0.0B |
MMTM Dividend-Like Income Using Covered Calls
With MMTM at 292.90, 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% |
8.79 |
2.4 |
| 5% |
14.65 |
4.0 |
| 10% |
29.29 |
8.0 |
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 MMTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
295.00 |
5.70 |
46 |
12.4 |
1.78 (0.6%) |
| Nov 21 |
295.00 |
2.60 |
18 |
14.4 |
1.78 (0.6%) |
| 5% Yield On MMTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
295.00 |
5.70 |
46 |
12.4 |
1.78 (0.6%) |
| Nov 21 |
295.00 |
2.60 |
18 |
14.4 |
1.78 (0.6%) |
| 10% Yield On MMTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
295.00 |
5.70 |
46 |
12.4 |
1.78 (0.6%) |
| Nov 21 |
295.00 |
2.60 |
18 |
14.4 |
1.78 (0.6%) |
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