TTD Dividend Type Payments
Although TTD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The Trade Desk, 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 Thu 4:16 PM ET):
| The Trade Desk, Inc. - Class A (TTD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 74.11 |
74.30 |
74.41 |
+0.83 |
3.1M |
119 |
36B |
TTD Dividend-Like Income Using Covered Calls
With TTD at 74.41, 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% |
2.23 |
0.6 |
| 5% |
3.72 |
1.0 |
| 10% |
7.44 |
2.0 |
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 TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
74.00 |
3.85 |
30 |
11.8 |
0.00 (0.0%) |
| Aug 8 |
100.00 |
0.37 |
37 |
1.0 |
25.70 (34.5%) |
| 5% Yield On TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
74.00 |
3.85 |
30 |
11.8 |
0.00 (0.0%) |
| Aug 8 |
74.00 |
6.15 |
37 |
15.8 |
0.00 (0.0%) |
| 10% Yield On TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
74.00 |
3.85 |
30 |
11.8 |
0.00 (0.0%) |
| Aug 8 |
74.00 |
6.15 |
37 |
15.8 |
0.00 (0.0%) |
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