REE Dividend Type Payments
Although REE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on REE Automotive Ltd. - Class A Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:45 AM ET):
| REE Automotive Ltd. - Class A Ordinary Shares (REE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 3.20 |
3.23 |
3.21 |
+0.20 |
131K |
- |
0.0B |
REE Dividend-Like Income Using Covered Calls
With REE at 3.21, 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% |
0.10 |
0.0 |
| 5% |
0.16 |
0.0 |
| 10% |
0.32 |
0.1 |
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 REE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
5.00 |
0.15 |
96 |
0.2 |
1.77 (55.1%) |
| Nov 21 |
10.00 |
0.10 |
194 |
0.1 |
6.77 (210.9%) |
| 5% Yield On REE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
5.00 |
0.15 |
96 |
0.2 |
1.77 (55.1%) |
| Nov 21 |
10.00 |
0.10 |
194 |
0.1 |
6.77 (210.9%) |
| 10% Yield On REE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
5.00 |
0.15 |
96 |
0.2 |
1.77 (55.1%) |
| Nov 21 |
5.00 |
0.30 |
194 |
0.2 |
1.77 (55.1%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
