QTEC Dividend Type Payments
Although QTEC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust NASDAQ-100-Technology Sector Index Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:50 PM ET):
| First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 237.48 |
237.58 |
237.47 |
+4.90 |
83K |
- |
0.2B |
QTEC Dividend-Like Income Using Covered Calls
With QTEC at 237.47, 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% |
7.12 |
2.0 |
| 5% |
11.87 |
3.3 |
| 10% |
23.75 |
6.5 |
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 QTEC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
240.00 |
6.60 |
61 |
10.8 |
2.42 (1.0%) |
| Nov 21 |
240.00 |
3.80 |
33 |
11.5 |
2.42 (1.0%) |
| 5% Yield On QTEC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
240.00 |
6.60 |
61 |
10.8 |
2.42 (1.0%) |
| Nov 21 |
240.00 |
3.80 |
33 |
11.5 |
2.42 (1.0%) |
| 10% Yield On QTEC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
240.00 |
6.60 |
61 |
10.8 |
2.42 (1.0%) |
| Nov 21 |
240.00 |
3.80 |
33 |
11.5 |
2.42 (1.0%) |
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