COIN Dividend Type Payments
Although COIN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Coinbase Global, Inc. - 3Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:10 PM ET):
| Coinbase Global, Inc. - 3Class A (COIN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 163.87 |
163.97 |
163.92 |
-3.33 |
6.8M |
14 |
45B |
COIN Dividend-Like Income Using Covered Calls
With COIN at 163.92, 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% |
4.92 |
1.3 |
| 5% |
8.20 |
2.2 |
| 10% |
16.39 |
4.5 |
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 COIN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
165.00 |
7.10 |
4 |
177.5 |
1.03 (0.6%) |
| Feb 20 |
165.00 |
8.60 |
11 |
78.2 |
1.03 (0.6%) |
| 5% Yield On COIN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
165.00 |
7.10 |
4 |
177.5 |
1.03 (0.6%) |
| Feb 20 |
165.00 |
8.60 |
11 |
78.2 |
1.03 (0.6%) |
| 10% Yield On COIN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 13 |
165.00 |
7.10 |
4 |
177.5 |
1.03 (0.6%) |
| Feb 20 |
165.00 |
8.60 |
11 |
78.2 |
1.03 (0.6%) |
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