QD Dividend Type Payments
Although QD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Qudian Inc. American Depositary Shares, each representing one Class A Or to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Qudian Inc. American Depositary Shares, each representing one Class A Or (QD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 2.39 |
2.49 |
2.47 |
+0.16 |
935K |
92 |
0.0B |
QD Dividend-Like Income Using Covered Calls
With QD at 2.47, 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% |
0.07 |
0.0 |
| 5% |
0.12 |
0.0 |
| 10% |
0.25 |
0.1 |
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 QD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
2.50 |
0.15 |
33 |
0.5 |
0.01 (0.4%) |
| May 16 |
2.50 |
0.20 |
180 |
0.1 |
0.01 (0.4%) |
| 5% Yield On QD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
2.50 |
0.15 |
33 |
0.5 |
0.01 (0.4%) |
| May 16 |
2.50 |
0.20 |
180 |
0.1 |
0.01 (0.4%) |
| 10% Yield On QD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
2.50 |
0.15 |
33 |
0.5 |
0.01 (0.4%) |
| May 16 |
2.50 |
0.20 |
180 |
0.1 |
0.01 (0.4%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
