OKTA Dividend Type Payments
Although OKTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Okta, Inc. - Class A 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):
| Okta, Inc. - Class A (OKTA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 97.41 |
97.94 |
97.48 |
-2.70 |
2.2M |
138 |
18B |
OKTA Dividend-Like Income Using Covered Calls
With OKTA at 97.48, 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% |
2.92 |
0.8 |
| 5% |
4.87 |
1.3 |
| 10% |
9.75 |
2.7 |
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 OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
100.00 |
1.54 |
21 |
7.3 |
2.06 (2.1%) |
| Jul 11 |
100.00 |
2.37 |
29 |
8.2 |
2.06 (2.1%) |
| 5% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
100.00 |
1.54 |
21 |
7.3 |
2.06 (2.1%) |
| Jul 11 |
100.00 |
2.37 |
29 |
8.2 |
2.06 (2.1%) |
| 10% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
100.00 |
1.54 |
21 |
7.3 |
2.06 (2.1%) |
| Jul 11 |
100.00 |
2.37 |
29 |
8.2 |
2.06 (2.1%) |
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