BATRA Dividend Type Payments
Although BATRA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Media Corporation - Series A Liberty Braves to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:20 PM ET):
| Liberty Media Corporation - Series A Liberty Braves (BATRA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 43.22 |
43.33 |
43.33 |
-0.64 |
56K |
- |
2.8B |
BATRA Dividend-Like Income Using Covered Calls
With BATRA at 43.33, 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% |
1.30 |
0.4 |
| 5% |
2.17 |
0.6 |
| 10% |
4.33 |
1.2 |
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 BATRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
45.00 |
0.50 |
80 |
0.6 |
1.67 (3.9%) |
| Jul 18 |
45.00 |
0.65 |
52 |
1.3 |
1.67 (3.9%) |
| 5% Yield On BATRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
45.00 |
0.50 |
80 |
0.6 |
1.67 (3.9%) |
| Jul 18 |
45.00 |
0.65 |
52 |
1.3 |
1.67 (3.9%) |
| 10% Yield On BATRA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
45.00 |
0.65 |
52 |
1.3 |
1.67 (3.9%) |
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