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 Wed 4:16 PM ET):
| Carvana Co. Class A (CVNA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 249.66 |
250.00 |
259.17 |
+0.36 |
4.6M |
163 |
55B |
CVNA Dividend-Like Income Using Covered Calls
With CVNA at 259.17, 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% |
7.78 |
2.1 |
| 5% |
12.96 |
3.6 |
| 10% |
25.92 |
7.1 |
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 |
| Jun 6 |
250.00 |
27.35 |
31 |
88.2 |
0.00 (0.0%) |
| May 9 |
250.00 |
20.80 |
3 |
693.3 |
0.00 (0.0%) |
| 5% Yield On CVNA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 6 |
250.00 |
27.35 |
31 |
88.2 |
0.00 (0.0%) |
| May 9 |
250.00 |
20.80 |
3 |
693.3 |
0.00 (0.0%) |
| 10% Yield On CVNA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 6 |
250.00 |
27.35 |
31 |
88.2 |
0.00 (0.0%) |
| May 9 |
250.00 |
20.80 |
3 |
693.3 |
0.00 (0.0%) |
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