RSI Dividend Type Payments
Although RSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rush Street Interactive, 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 Tue 4:16 PM ET):
| Rush Street Interactive, Inc. Class A (RSI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 13.80 |
14.55 |
14.47 |
+0.31 |
980K |
- |
3.2B |
RSI Dividend-Like Income Using Covered Calls
With RSI at 14.47, 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% |
0.43 |
0.1 |
| 5% |
0.72 |
0.2 |
| 10% |
1.45 |
0.4 |
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 RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
15.00 |
0.95 |
53 |
1.8 |
0.45 (3.1%) |
| Oct 17 |
15.00 |
1.10 |
116 |
0.9 |
0.45 (3.1%) |
| 5% Yield On RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
15.00 |
0.95 |
53 |
1.8 |
0.45 (3.1%) |
| Oct 17 |
15.00 |
1.10 |
116 |
0.9 |
0.45 (3.1%) |
| 10% Yield On RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
15.00 |
0.95 |
53 |
1.8 |
0.45 (3.1%) |
| Oct 17 |
15.00 |
1.10 |
116 |
0.9 |
0.45 (3.1%) |
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