TTWO Dividend Type Payments
Although TTWO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Take-Two Interactive Software, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:25 AM ET):
| Take-Two Interactive Software, Inc. (TTWO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 229.03 | 229.33 | 229.18 | +3.02 | 573K | - | 40B |
TTWO Dividend-Like Income Using Covered Calls
With TTWO at 229.18, 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% | 6.88 | 1.9 |
| 5% | 11.46 | 3.1 |
| 10% | 22.92 | 6.3 |
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 TTWO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 6 | 230.00 | 8.80 | 24 | 36.7 | 0.67 (0.3%) | |
| Jun 13 | 230.00 | 9.50 | 31 | 30.6 | 0.67 (0.3%) | |
| 5% Yield On TTWO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 6 | 230.00 | 8.80 | 24 | 36.7 | 0.67 (0.3%) | |
| Jun 13 | 230.00 | 9.50 | 31 | 30.6 | 0.67 (0.3%) | |
| 10% Yield On TTWO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 6 | 230.00 | 8.80 | 24 | 36.7 | 0.67 (0.3%) | |
| Jun 13 | 230.00 | 9.50 | 31 | 30.6 | 0.67 (0.3%) | |
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| 1. | NVDA dividend | 6. | IWM dividend | 1. | DOCS dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | CAVA dividend | |
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Want more examples? TTT Dividend | TU Dividend
