MNX Dividend Type Payments

Although MNX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CBOE MINI INDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:30 PM ET):

CBOE MINI INDEX (MNX)
Bid Ask Last Change Volume P/E Market Cap
665.76 665.76 665.76 -20.94 0K - 0.0B

MNX Dividend-Like Income Using Covered Calls

With MNX at 665.76, 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% 19.97 5.5
5% 33.29 9.1
10% 66.58 18.2

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 MNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 710.00 3.25 33 9.8 44.24 (6.6%)
Mar 15 740.00 6.45 117 5.5 74.24 (11.2%)
5% Yield On MNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 710.00 3.25 33 9.8 44.24 (6.6%)
Mar 15 720.00 11.85 117 10.1 54.24 (8.1%)
10% Yield On MNX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 695.00 6.50 33 19.7 29.24 (4.4%)
Mar 15 690.00 24.00 117 20.5 24.24 (3.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.UVXY dividend
2.SPX dividend 7.IWM dividend   2.CTL dividend
3.EEM dividend 8.PBR dividend   3.VOD dividend
4.QQQ dividend 9.F dividend   4.AMD dividend
5.EWZ dividend 10.BAC dividend   5.NBR dividend

Want more examples? MNTX Dividend | MO Dividend