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 Wed 4:16 PM ET):
| ARK Autonomous Technology & Robotics ETF (ARKQ) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 82.64 |
84.80 |
84.25 |
-0.13 |
148K |
- |
3.4B |
ARKQ Dividend-Like Income Using Covered Calls
With ARKQ at 84.25, 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% |
2.53 |
0.7 |
| 5% |
4.21 |
1.2 |
| 10% |
8.43 |
2.3 |
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 |
| Sep 19 |
100.00 |
1.85 |
241 |
0.8 |
15.20 (18.0%) |
| Jun 20 |
85.00 |
5.30 |
150 |
3.5 |
0.20 (0.2%) |
| 5% Yield On ARKQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
85.00 |
7.00 |
241 |
2.9 |
0.20 (0.2%) |
| Jun 20 |
85.00 |
5.30 |
150 |
3.5 |
0.20 (0.2%) |
| 10% Yield On ARKQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
85.00 |
7.00 |
241 |
2.9 |
0.20 (0.2%) |
| Jun 20 |
85.00 |
5.30 |
150 |
3.5 |
0.20 (0.2%) |
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