RSI Dividend Type Payments
Although RSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rush Street Interactive, 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 Fri 4:16 PM ET):
| Rush Street Interactive, Inc. Class A (RSI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 14.65 |
15.47 |
14.88 |
-0.45 |
947K |
- |
3.5B |
RSI Dividend-Like Income Using Covered Calls
With RSI at 14.88, 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% |
0.45 |
0.1 |
| 5% |
0.74 |
0.2 |
| 10% |
1.49 |
0.4 |
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 RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
20.00 |
0.60 |
190 |
0.3 |
4.53 (30.4%) |
| Jul 17 |
17.50 |
1.75 |
372 |
0.5 |
2.03 (13.6%) |
| 5% Yield On RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
20.00 |
0.60 |
190 |
0.3 |
4.53 (30.4%) |
| Jul 17 |
17.50 |
1.75 |
372 |
0.5 |
2.03 (13.6%) |
| 10% Yield On RSI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 17 |
17.50 |
1.75 |
372 |
0.5 |
2.03 (13.6%) |
| Jan 15 |
17.50 |
2.60 |
554 |
0.5 |
2.03 (13.6%) |
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