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 3:05 PM ET):
| Okta, Inc. - Class A (OKTA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 86.12 |
86.22 |
86.17 |
+4.01 |
2.1M |
86 |
15B |
OKTA Dividend-Like Income Using Covered Calls
With OKTA at 86.17, 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% |
2.59 |
0.7 |
| 5% |
4.31 |
1.2 |
| 10% |
8.62 |
2.4 |
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 |
| Mar 6 |
100.00 |
1.30 |
29 |
4.5 |
13.78 (16.0%) |
| Feb 13 |
86.00 |
2.13 |
8 |
23.9 |
0.00 (0.0%) |
| 5% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 6 |
100.00 |
1.30 |
29 |
4.5 |
13.78 (16.0%) |
| Feb 13 |
86.00 |
2.13 |
8 |
23.9 |
0.00 (0.0%) |
| 10% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 6 |
100.00 |
1.30 |
29 |
4.5 |
13.78 (16.0%) |
| Feb 13 |
86.00 |
2.13 |
8 |
23.9 |
0.00 (0.0%) |
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