ARKQ Dividend Type Payments
Although ARKQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ARK Autonomous Technology & Robotics ETF 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):
| ARK Autonomous Technology & Robotics ETF (ARKQ) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 120.12 |
122.78 |
121.22 |
+2.04 |
251K |
- |
4.8B |
ARKQ Dividend-Like Income Using Covered Calls
With ARKQ at 121.22, 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% |
3.64 |
1.0 |
| 5% |
6.06 |
1.7 |
| 10% |
12.12 |
3.3 |
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 ARKQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
123.00 |
5.10 |
54 |
9.4 |
0.22 (0.2%) |
| Nov 21 |
123.00 |
2.90 |
26 |
11.2 |
0.22 (0.2%) |
| 5% Yield On ARKQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
123.00 |
5.10 |
54 |
9.4 |
0.22 (0.2%) |
| Nov 21 |
123.00 |
2.90 |
26 |
11.2 |
0.22 (0.2%) |
| 10% Yield On ARKQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
123.00 |
5.10 |
54 |
9.4 |
0.22 (0.2%) |
| Nov 21 |
123.00 |
2.90 |
26 |
11.2 |
0.22 (0.2%) |
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