OPRA Dividend Type Payments
Although OPRA has no upcoming (meaning, Board-approved and announced) dividends, 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 Tue 1:25 PM ET):
| Opera Limited - American Depositary Shares (OPRA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 17.79 |
17.83 |
17.80 |
+0.06 |
255K |
21 |
0.0B |
OPRA Dividend-Like Income Using Covered Calls
With OPRA at 17.80, 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% |
0.53 |
0.1 |
| 5% |
0.89 |
0.2 |
| 10% |
1.78 |
0.5 |
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 |
| Oct 17 |
20.00 |
0.90 |
88 |
1.0 |
2.17 (12.2%) |
| Sep 19 |
20.00 |
0.50 |
60 |
0.8 |
2.17 (12.2%) |
| 5% Yield On OPRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
20.00 |
0.90 |
88 |
1.0 |
2.17 (12.2%) |
| Sep 19 |
20.00 |
0.50 |
60 |
0.8 |
2.17 (12.2%) |
| 10% Yield On OPRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
20.00 |
0.90 |
88 |
1.0 |
2.17 (12.2%) |
| Sep 19 |
20.00 |
0.50 |
60 |
0.8 |
2.17 (12.2%) |
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