CME Dividend

Although CME has a dividend of 1.25 with an ex-dividend date of Dec 12, you can sell covered calls on CME Group Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

CME Group Inc. - Class A (CME)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
270.00	277.70	277.49	-1.50	1.7M	27	101B

CME Dividend-Like Income Using Covered Calls

With CME at 277.49, 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%	8.32	2.3
5%	13.87	3.8
10%	27.75	7.6

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 CME Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	277.50	2.00	4	45.0	0.00 (0.0%)
Dec 12	277.50	3.20	11	27.3	0.00 (0.0%)

5% Yield On CME Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	277.50	2.00	4	45.0	0.00 (0.0%)
Dec 12	277.50	3.20	11	27.3	0.00 (0.0%)

10% Yield On CME Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	277.50	2.00	4	45.0	0.00 (0.0%)
Dec 12	277.50	3.20	11	27.3	0.00 (0.0%)

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Top 10 Open Interest For Dec 19 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	EEM dividend	1.	RZLT dividend
2.	SPY dividend	7.	GLD dividend	2.	AI dividend
3.	QQQ dividend	8.	TLT dividend	3.	IMNM dividend
4.	IWM dividend	9.	SLV dividend	4.	IOT dividend
5.	IBIT dividend	10.	FXI dividend	5.	PATH dividend

Want more examples? CMDY Dividend | CMF Dividend