TTWO Dividend Type Payments
Although TTWO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Take-Two Interactive Software, Inc. 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):
Take-Two Interactive Software, Inc. (TTWO) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
225.30 | 226.59 | 226.16 | -0.09 | 2.0M | - | 40B |
TTWO Dividend-Like Income Using Covered Calls
With TTWO at 226.16, 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% | 6.78 | 1.9 |
5% | 11.31 | 3.1 |
10% | 22.62 | 6.2 |
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 TTWO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 6 | 230.00 | 7.30 | 25 | 29.2 | 3.41 (1.5%) | |
Jun 13 | 230.00 | 7.00 | 32 | 21.9 | 3.41 (1.5%) |
5% Yield On TTWO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 6 | 230.00 | 7.30 | 25 | 29.2 | 3.41 (1.5%) | |
Jun 13 | 230.00 | 7.00 | 32 | 21.9 | 3.41 (1.5%) |
10% Yield On TTWO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 6 | 230.00 | 7.30 | 25 | 29.2 | 3.41 (1.5%) | |
Jun 13 | 230.00 | 7.00 | 32 | 21.9 | 3.41 (1.5%) |
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