OKTA Dividend Type Payments
Although OKTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Okta, Inc. - 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):
| Okta, Inc. - Class A (OKTA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 98.61 |
99.50 |
99.11 |
+0.97 |
1.7M |
135 |
17B |
OKTA Dividend-Like Income Using Covered Calls
With OKTA at 99.11, 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% |
2.97 |
0.8 |
| 5% |
4.96 |
1.4 |
| 10% |
9.91 |
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 OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
3.15 |
30 |
10.5 |
0.50 (0.5%) |
| Aug 8 |
100.00 |
3.30 |
37 |
8.9 |
0.50 (0.5%) |
| 5% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
3.15 |
30 |
10.5 |
0.50 (0.5%) |
| Aug 8 |
100.00 |
3.30 |
37 |
8.9 |
0.50 (0.5%) |
| 10% Yield On OKTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
3.15 |
30 |
10.5 |
0.50 (0.5%) |
| Aug 8 |
100.00 |
3.30 |
37 |
8.9 |
0.50 (0.5%) |
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