NKE Dividend

Although NKE has a dividend of 0.22 with an ex-dividend date of May 31, you can sell covered calls on Nike, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Nike, Inc (NKE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
82.11	82.95	82.16	-0.48	5.8M	32	130B

NKE Dividend-Like Income Using Covered Calls

With NKE at 82.16, 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%	2.46	0.7
5%	4.11	1.1
10%	8.22	2.3

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 NKE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 31	85.00	0.06	8	0.8	2.05 (2.5%)
Jun 7	86.00	0.12	15	0.8	3.05 (3.7%)

5% Yield On NKE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 31	84.50	0.11	8	1.4	1.55 (1.9%)
Jun 7	85.50	0.18	15	1.2	2.55 (3.1%)

10% Yield On NKE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 31	83.50	0.29	8	3.6	0.55 (0.7%)
Jun 7	84.50	0.35	15	2.3	1.55 (1.9%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jun 21 Expiration				Top 5 High Yield
1.	SPY dividend	6.	FXI dividend	1.	ARQL dividend
2.	SPX dividend	7.	BAC dividend	2.	ITCI dividend
3.	EEM dividend	8.	VXX dividend	3.	CARA dividend
4.	QQQ dividend	9.	AAPL dividend	4.	MAXR dividend
5.	EWZ dividend	10.	EFA dividend	5.	CBAY dividend

Want more examples? NK Dividend | NKTR Dividend