PTEN Dividend

Although PTEN has a dividend of 0.08 with an ex-dividend date of Jun 2, 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 Wed 1:45 PM ET):

Patterson-UTI Energy, Inc. (PTEN)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
5.55	5.56	5.55	+0.01	6.1M	-	2.1B

PTEN Dividend-Like Income Using Covered Calls

With PTEN at 5.55, 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%	0.17	0.0
5%	0.28	0.1
10%	0.56	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
Aug 15	10.00	0.05	101	0.0	4.44 (80.0%)
May 16	6.00	0.10	10	1.0	0.44 (7.9%)

5% Yield On PTEN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	6.00	0.45	101	0.4	0.44 (7.9%)
May 16	6.00	0.10	10	1.0	0.44 (7.9%)

10% Yield On PTEN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	6.00	0.45	101	0.4	0.44 (7.9%)
May 16	6.00	0.10	10	1.0	0.44 (7.9%)

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Want more examples? PTCT Dividend | PTF Dividend