RRR Dividend Type Payments

RED ROCK RESORTS dividend

Although RRR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RED ROCK RESORTS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:25 PM ET):

RED ROCK RESORTS (RRR)
Bid Ask Last Change Volume P/E Market Cap
24.47 24.49 24.48 -0.10 351K 10 2.8B

RRR Dividend-Like Income Using Covered Calls

With RRR at 24.48, here's a table showing how big the annual "dividend" (ie. 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% 0.73 0.2
5% 1.22 0.3
10% 2.45 0.7

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 19 25.00 0.20 5 4.0 0.51 (2.1%)
Nov 16 25.00 0.90 33 2.7 0.51 (2.1%)
5% Yield On RRR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 25.00 0.20 5 4.0 0.51 (2.1%)
Nov 16 25.00 0.90 33 2.7 0.51 (2.1%)
10% Yield On RRR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 25.00 0.20 5 4.0 0.51 (2.1%)
Nov 16 25.00 0.90 33 2.7 0.51 (2.1%)

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

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.UVXY dividend
2.SPX dividend 7.FXI dividend   2.CRON dividend
3.EEM dividend 8.BAC dividend   3.TLRY dividend
4.QQQ dividend 9.AMD dividend   4.NIO dividend
5.PBR dividend 10.XLF dividend   5.PYX dividend

Want more examples? RRGB Dividend | RRTS Dividend