NDX Dividend Type Payments

Although NDX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NASDAQ 100 INDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

NASDAQ 100 INDEX (NDX)
Bid Ask Last Change Volume P/E Market Cap
7,342.61 7,342.61 7,342.61 -104.56 0K - 0.0B

NDX Dividend-Like Income Using Covered Calls

With NDX at 7,342.61, 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% 0.21 0.1
5% 0.35 0.1
10% 0.70 0.2

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 NDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 7430.00 2.60 3 86.7 87.39 (1.2%)
Aug 24 7530.00 6.70 10 67.0 187.39 (2.6%)
5% Yield On NDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 7425.00 3.30 3 110.0 82.39 (1.1%)
Aug 24 7500.00 10.80 10 108.0 157.39 (2.1%)
10% Yield On NDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 7400.00 7.50 3 250.0 57.39 (0.8%)
Aug 24 7450.00 23.00 10 230.0 107.39 (1.5%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.NVDA dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.AMAT dividend
5.BAC dividend 10.AABA dividend   5.DBD dividend

Want more examples? NDSN Dividend | NE Dividend