TTD Dividend Type Payments
Although TTD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The Trade Desk, 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 9:35 AM ET):
| The Trade Desk, Inc. - Class A (TTD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 53.31 |
53.35 |
53.38 |
-0.98 |
1.3M |
88 |
27B |
TTD Dividend-Like Income Using Covered Calls
With TTD at 53.38, 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% |
1.60 |
0.4 |
| 5% |
2.67 |
0.7 |
| 10% |
5.34 |
1.5 |
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 TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
54.00 |
2.12 |
23 |
9.2 |
0.65 (1.2%) |
| Sep 12 |
54.00 |
2.48 |
30 |
8.3 |
0.65 (1.2%) |
| 5% Yield On TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
54.00 |
2.12 |
23 |
9.2 |
0.65 (1.2%) |
| Sep 12 |
54.00 |
2.48 |
30 |
8.3 |
0.65 (1.2%) |
| 10% Yield On TTD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
54.00 |
2.12 |
23 |
9.2 |
0.65 (1.2%) |
| Sep 12 |
54.00 |
2.48 |
30 |
8.3 |
0.65 (1.2%) |
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