CVNA Dividend Type Payments
Although CVNA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Carvana Co. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Carvana Co. Class A (CVNA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 318.50 |
320.98 |
319.65 |
-0.66 |
2.1M |
112 |
69B |
CVNA Dividend-Like Income Using Covered Calls
With CVNA at 319.65, 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% |
9.59 |
2.6 |
| 5% |
15.98 |
4.4 |
| 10% |
31.97 |
8.8 |
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 CVNA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
320.00 |
19.35 |
36 |
51.0 |
0.00 (0.0%) |
| Jun 6 |
320.00 |
9.30 |
9 |
92.4 |
0.00 (0.0%) |
| 5% Yield On CVNA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
320.00 |
19.35 |
36 |
51.0 |
0.00 (0.0%) |
| Jun 6 |
320.00 |
9.30 |
9 |
92.4 |
0.00 (0.0%) |
| 10% Yield On CVNA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
320.00 |
19.35 |
36 |
51.0 |
0.00 (0.0%) |
| Jun 6 |
320.00 |
9.30 |
9 |
92.4 |
0.00 (0.0%) |
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