UPST Dividend Type Payments
Although UPST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Upstart Holdings, Inc. - Common stock 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):
| Upstart Holdings, Inc. - Common stock (UPST) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 75.50 |
75.65 |
75.62 |
-3.41 |
5.1M |
- |
7.5B |
UPST Dividend-Like Income Using Covered Calls
With UPST at 75.62, 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% |
2.27 |
0.6 |
| 5% |
3.78 |
1.0 |
| 10% |
7.56 |
2.1 |
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 UPST Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
76.00 |
5.15 |
22 |
23.4 |
0.35 (0.5%) |
| Aug 8 |
100.00 |
2.69 |
29 |
9.3 |
24.35 (32.2%) |
| 5% Yield On UPST Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
76.00 |
5.15 |
22 |
23.4 |
0.35 (0.5%) |
| Aug 8 |
100.00 |
2.69 |
29 |
9.3 |
24.35 (32.2%) |
| 10% Yield On UPST Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
76.00 |
5.15 |
22 |
23.4 |
0.35 (0.5%) |
| Aug 8 |
100.00 |
2.69 |
29 |
9.3 |
24.35 (32.2%) |
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