BATT Dividend Type Payments
Although BATT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Amplify Lithium & Battery Technology 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):
| Amplify Lithium & Battery Technology ETF (BATT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 13.05 |
13.89 |
13.33 |
+0.11 |
83K |
- |
0.0B |
BATT Dividend-Like Income Using Covered Calls
With BATT at 13.33, 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% |
0.40 |
0.1 |
| 5% |
0.67 |
0.2 |
| 10% |
1.33 |
0.4 |
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 BATT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
14.00 |
0.60 |
213 |
0.3 |
0.11 (0.8%) |
| Feb 20 |
14.00 |
0.65 |
129 |
0.5 |
0.11 (0.8%) |
| 5% Yield On BATT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
14.00 |
0.60 |
213 |
0.3 |
0.11 (0.8%) |
| Feb 20 |
14.00 |
0.65 |
129 |
0.5 |
0.11 (0.8%) |
| 10% Yield On BATT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
15.00 |
0.80 |
213 |
0.4 |
1.11 (8.3%) |
| Feb 20 |
14.00 |
0.65 |
129 |
0.5 |
0.11 (0.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
