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 Fri 4:16 PM ET):
| ARK Autonomous Technology & Robotics ETF (ARKQ) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 99.72 |
100.77 |
99.95 |
-0.83 |
151K |
- |
4.0B |
ARKQ Dividend-Like Income Using Covered Calls
With ARKQ at 99.95, 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% |
3.00 |
0.8 |
| 5% |
5.00 |
1.4 |
| 10% |
10.00 |
2.7 |
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 |
| Oct 17 |
101.00 |
3.90 |
64 |
6.1 |
0.23 (0.2%) |
| Sep 19 |
101.00 |
1.65 |
36 |
4.6 |
0.23 (0.2%) |
| 5% Yield On ARKQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
101.00 |
3.90 |
64 |
6.1 |
0.23 (0.2%) |
| Sep 19 |
101.00 |
1.65 |
36 |
4.6 |
0.23 (0.2%) |
| 10% Yield On ARKQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
101.00 |
3.90 |
64 |
6.1 |
0.23 (0.2%) |
| Sep 19 |
101.00 |
1.65 |
36 |
4.6 |
0.23 (0.2%) |
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