AMBA Dividend Type Payments
Although AMBA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ambarella, Inc. - Ordinary Shares 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):
| Ambarella, Inc. - Ordinary Shares (AMBA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 68.55 |
69.98 |
68.73 |
+4.13 |
1.5M |
- |
2.8B |
AMBA Dividend-Like Income Using Covered Calls
With AMBA at 68.73, 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% |
2.06 |
0.6 |
| 5% |
3.44 |
0.9 |
| 10% |
6.87 |
1.9 |
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 AMBA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
70.00 |
1.50 |
22 |
6.8 |
0.02 (0.0%) |
| Feb 13 |
70.00 |
1.95 |
29 |
6.7 |
0.02 (0.0%) |
| 5% Yield On AMBA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
70.00 |
1.50 |
22 |
6.8 |
0.02 (0.0%) |
| Feb 13 |
70.00 |
1.95 |
29 |
6.7 |
0.02 (0.0%) |
| 10% Yield On AMBA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
70.00 |
1.50 |
22 |
6.8 |
0.02 (0.0%) |
| Feb 13 |
70.00 |
1.95 |
29 |
6.7 |
0.02 (0.0%) |
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