FWONK Dividend Type Payments
Although FWONK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Media Corporation - Series C Liberty Formula One to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Liberty Media Corporation - Series C Liberty Formula One (FWONK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 99.94 |
104.59 |
99.85 |
+1.34 |
1.4M |
- |
66B |
FWONK Dividend-Like Income Using Covered Calls
With FWONK at 99.85, 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% |
3.00 |
0.8 |
| 5% |
4.99 |
1.4 |
| 10% |
9.99 |
2.7 |
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 FWONK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
105.00 |
0.75 |
50 |
1.5 |
0.41 (0.4%) |
| Nov 21 |
105.00 |
0.25 |
22 |
1.1 |
0.41 (0.4%) |
| 5% Yield On FWONK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
105.00 |
0.75 |
50 |
1.5 |
0.41 (0.4%) |
| May 15 |
105.00 |
5.90 |
197 |
3.0 |
0.41 (0.4%) |
| 10% Yield On FWONK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
105.00 |
5.90 |
197 |
3.0 |
0.41 (0.4%) |
| Feb 20 |
105.00 |
3.10 |
113 |
2.7 |
0.41 (0.4%) |
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