RRR Dividend

Although RRR has a dividend of 0.25 with an ex-dividend date of Sep 15, you can sell covered calls on Red Rock Resorts, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:00 PM ET):

Red Rock Resorts, Inc. - Class A (RRR)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
61.10	61.15	61.10	+0.88	435K	21	6.4B

RRR Dividend-Like Income Using Covered Calls

With RRR at 61.10, 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%	1.83	0.5
5%	3.06	0.8
10%	6.11	1.7

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 RRR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	64.00	1.45	66	2.2	2.85 (4.7%)
Sep 19	65.00	0.50	38	1.3	3.85 (6.3%)

5% Yield On RRR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	64.00	1.45	66	2.2	2.85 (4.7%)
Sep 19	65.00	0.50	38	1.3	3.85 (6.3%)

10% Yield On RRR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	64.00	1.45	66	2.2	2.85 (4.7%)
Jan 16	65.00	2.65	157	1.7	3.85 (6.3%)

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Want more examples? RRGB Dividend | RS Dividend