UPST Dividend Type Payments
Although UPST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Upstart Holdings, Inc. - Common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Upstart Holdings, Inc. - Common stock (UPST) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
23.40 |
23.46 |
23.46 |
+0.63 |
3.6M |
- |
2.0B |
UPST Dividend-Like Income Using Covered Calls
With UPST at 23.46, 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% |
0.70 |
0.2 |
5% |
1.17 |
0.3 |
10% |
2.35 |
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 UPST Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 3 |
23.50 |
0.89 |
8 |
11.1 |
0.04 (0.2%) |
May 10 |
23.50 |
2.41 |
15 |
16.1 |
0.04 (0.2%) |
5% Yield On UPST Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 3 |
23.50 |
0.89 |
8 |
11.1 |
0.04 (0.2%) |
May 10 |
23.50 |
2.41 |
15 |
16.1 |
0.04 (0.2%) |
10% Yield On UPST Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 3 |
23.50 |
0.89 |
8 |
11.1 |
0.04 (0.2%) |
May 10 |
23.50 |
2.41 |
15 |
16.1 |
0.04 (0.2%) |
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