RACE Dividend Type Payments

Although RACE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ferrari N.V. Common Shares 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):

Ferrari N.V. Common Shares (RACE)
Bid Ask Last Change Volume P/E Market Cap
487.39 493.92 490.66 -7.28 268K 52 92B

RACE Dividend-Like Income Using Covered Calls

With RACE at 490.66, 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% 14.72 4.0
5% 24.53 6.7
10% 49.07 13.4

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 RACE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 500.00 13.40 36 37.2 6.08 (1.2%)
Jul 18 500.00 1.40 8 17.5 6.08 (1.2%)
5% Yield On RACE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 500.00 13.40 36 37.2 6.08 (1.2%)
Jul 18 500.00 1.40 8 17.5 6.08 (1.2%)
10% Yield On RACE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 500.00 13.40 36 37.2 6.08 (1.2%)
Jul 18 500.00 1.40 8 17.5 6.08 (1.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jul 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.GLD dividend   1.NFE dividend
2.SLV dividend 7.AAPL dividend   2.APPS dividend
3.SPY dividend 8.IBIT dividend   3.BRSL dividend
4.TSLA dividend 9.TLT dividend   4.METC dividend
5.IWM dividend 10.QQQ dividend   5.PROK dividend

Want more examples? RAAX Dividend | RAFE Dividend