OPRA Dividend
Although OPRA has a dividend of 0.40 with an ex-dividend date of Jan 7, you can sell covered calls on Opera Limited - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Opera Limited - American Depositary Shares (OPRA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 13.86 |
14.57 |
13.99 |
-0.26 |
485K |
16 |
0.0B |
OPRA Dividend-Like Income Using Covered Calls
With OPRA at 13.99, 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% |
0.42 |
0.1 |
| 5% |
0.70 |
0.2 |
| 10% |
1.40 |
0.4 |
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 OPRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
15.00 |
1.35 |
150 |
0.9 |
0.43 (3.1%) |
| Jan 16 |
15.00 |
0.25 |
31 |
0.8 |
0.43 (3.1%) |
| 5% Yield On OPRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
15.00 |
1.35 |
150 |
0.9 |
0.43 (3.1%) |
| Jan 16 |
15.00 |
0.25 |
31 |
0.8 |
0.43 (3.1%) |
| 10% Yield On OPRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
15.00 |
1.35 |
150 |
0.9 |
0.43 (3.1%) |
| Jan 16 |
15.00 |
0.25 |
31 |
0.8 |
0.43 (3.1%) |
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