DK Dividend

Although DK has a dividend of 0.26 with an ex-dividend date of Nov 12, you can sell covered calls on Delek US Holdings, Inc. 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):

Delek US Holdings, Inc. (DK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
17.00	18.30	17.64	+0.34	2.0M	-	1.1B

DK Dividend-Like Income Using Covered Calls

With DK at 17.64, 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%	0.53	0.1
5%	0.88	0.2
10%	1.76	0.5

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 DK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	20.00	0.35	44	0.8	1.70 (9.6%)
Jan 17	20.00	0.65	72	0.9	1.70 (9.6%)

5% Yield On DK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	20.00	0.35	44	0.8	1.70 (9.6%)
Jan 17	20.00	0.65	72	0.9	1.70 (9.6%)

10% Yield On DK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	20.00	0.35	44	0.8	1.70 (9.6%)
Jan 17	20.00	0.65	72	0.9	1.70 (9.6%)

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Top 10 Open Interest For Nov 15 Expiration				Top 5 High Yield
1.	FXI dividend	6.	IWM dividend	1.	RDFN dividend
2.	NVDA dividend	7.	TLT dividend	2.	AFRM dividend
3.	SLV dividend	8.	TSLA dividend	3.	DKNG dividend
4.	SPY dividend	9.	XLF dividend	4.	PINS dividend
5.	EEM dividend	10.	EWZ dividend	5.	IOVA dividend

Want more examples? DJP Dividend | DKL Dividend