LIT Dividend Type Payments
Although LIT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Lithium & Battery Tech ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:55 AM ET):
| Global X Lithium & Battery Tech ETF (LIT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.18 | 40.23 | 40.21 | -0.05 | 34K | - | 1.0B |
LIT Dividend-Like Income Using Covered Calls
With LIT at 40.21, 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% | 1.21 | 0.3 |
| 5% | 2.01 | 0.6 |
| 10% | 4.02 | 1.1 |
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 LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 44.00 | 0.20 | 36 | 0.6 | 3.77 (9.4%) | |
| Oct 17 | 41.00 | 1.50 | 99 | 1.5 | 0.77 (1.9%) | |
| 5% Yield On LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 44.00 | 0.20 | 36 | 0.6 | 3.77 (9.4%) | |
| Oct 17 | 41.00 | 1.50 | 99 | 1.5 | 0.77 (1.9%) | |
| 10% Yield On LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 41.00 | 1.50 | 99 | 1.5 | 0.77 (1.9%) | |
| Jul 18 | 41.00 | 0.20 | 8 | 2.5 | 0.77 (1.9%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RUN dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | MP dividend | |
| 3. | SPY dividend | 8. | IBIT dividend | 3. | ENVX dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | KTOS dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | OKLO dividend | |
Want more examples? LION Dividend | LITE Dividend
