PTEN Dividend Type Payments
Although PTEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Patterson-UTI Energy, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
Patterson-UTI Energy, Inc. (PTEN) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
8.23 | 8.29 | 8.27 | -0.26 | 9.3M | 34 | 3.4B |
PTEN Dividend-Like Income Using Covered Calls
With PTEN at 8.27, 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% | 0.25 | 0.1 |
5% | 0.41 | 0.1 |
10% | 0.83 | 0.2 |
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 PTEN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 10.00 | 0.10 | 53 | 0.2 | 1.71 (20.7%) | |
Oct 18 | 9.00 | 0.05 | 25 | 0.2 | 0.71 (8.6%) |
5% Yield On PTEN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 10.00 | 0.10 | 53 | 0.2 | 1.71 (20.7%) | |
Oct 18 | 9.00 | 0.05 | 25 | 0.2 | 0.71 (8.6%) |
10% Yield On PTEN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 9.00 | 0.30 | 53 | 0.6 | 0.71 (8.6%) | |
May 16 | 9.00 | 0.75 | 235 | 0.3 | 0.71 (8.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | CPRI dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | DJT dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MBLY dividend | |
4. | QQQ dividend | 9. | GLD dividend | 4. | SMMT dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | CLSK dividend |
Want more examples? PTCT Dividend | PTF Dividend