SKLZ Dividend Type Payments
Although SKLZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Skillz 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 12:15 PM ET):
| Skillz Inc. Class A (SKLZ) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 6.63 |
6.70 |
6.70 |
+0.05 |
33K |
- |
0.1B |
SKLZ Dividend-Like Income Using Covered Calls
With SKLZ at 6.70, 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% |
0.20 |
0.1 |
| 5% |
0.34 |
0.1 |
| 10% |
0.67 |
0.2 |
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 SKLZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
10.00 |
0.65 |
193 |
0.3 |
3.30 (49.3%) |
| Aug 16 |
11.00 |
0.15 |
102 |
0.1 |
4.30 (64.2%) |
| 5% Yield On SKLZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
10.00 |
0.65 |
193 |
0.3 |
3.30 (49.3%) |
| Aug 16 |
11.00 |
0.15 |
102 |
0.1 |
4.30 (64.2%) |
| 10% Yield On SKLZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
10.00 |
0.65 |
193 |
0.3 |
3.30 (49.3%) |
| Aug 16 |
7.00 |
0.80 |
102 |
0.8 |
0.30 (4.5%) |
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