API Dividend Type Payments
Although API has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Agora, Inc. - ADS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Agora, Inc. - ADS (API) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 4.01 |
4.09 |
4.07 |
-0.32 |
1.2M |
- |
0.4B |
API Dividend-Like Income Using Covered Calls
With API at 4.07, 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% |
0.12 |
0.0 |
| 5% |
0.20 |
0.1 |
| 10% |
0.41 |
0.1 |
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 API Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
10.00 |
0.05 |
33 |
0.2 |
5.91 (145.2%) |
| Jan 17 |
5.00 |
0.40 |
61 |
0.7 |
0.91 (22.4%) |
| 5% Yield On API Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
10.00 |
0.05 |
33 |
0.2 |
5.91 (145.2%) |
| Jan 17 |
5.00 |
0.40 |
61 |
0.7 |
0.91 (22.4%) |
| 10% Yield On API Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
10.00 |
0.05 |
33 |
0.2 |
5.91 (145.2%) |
| Jan 17 |
5.00 |
0.40 |
61 |
0.7 |
0.91 (22.4%) |
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