UBOT Dividend Type Payments
Although UBOT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:40 PM ET):
| Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull (UBOT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 20.65 |
20.75 |
20.73 |
-0.66 |
17K |
- |
0.0B |
UBOT Dividend-Like Income Using Covered Calls
With UBOT at 20.73, 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% |
0.62 |
0.2 |
| 5% |
1.04 |
0.3 |
| 10% |
2.07 |
0.6 |
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 UBOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 16 |
21.00 |
1.50 |
114 |
1.3 |
0.25 (1.2%) |
| Nov 15 |
24.00 |
1.10 |
205 |
0.5 |
3.25 (15.7%) |
| 5% Yield On UBOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 16 |
21.00 |
1.50 |
114 |
1.3 |
0.25 (1.2%) |
| Nov 15 |
24.00 |
1.10 |
205 |
0.5 |
3.25 (15.7%) |
| 10% Yield On UBOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 16 |
21.00 |
1.50 |
114 |
1.3 |
0.25 (1.2%) |
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