ADAP Dividend Type Payments
Although ADAP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Adaptimmune Therapeutics plc - American Depositary Shares 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):
| Adaptimmune Therapeutics plc - American Depositary Shares (ADAP) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 0.44 |
0.47 |
0.45 |
-0.03 |
2.3M |
- |
0.0B |
ADAP Dividend-Like Income Using Covered Calls
With ADAP at 0.45, 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% |
0.01 |
0.0 |
| 5% |
0.02 |
0.0 |
| 10% |
0.05 |
0.0 |
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 ADAP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
0.50 |
0.05 |
39 |
0.1 |
0.03 (6.7%) |
| Dec 19 |
0.50 |
0.15 |
285 |
0.1 |
0.03 (6.7%) |
| 5% Yield On ADAP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
0.50 |
0.05 |
39 |
0.1 |
0.03 (6.7%) |
| Dec 19 |
0.50 |
0.15 |
285 |
0.1 |
0.03 (6.7%) |
| 10% Yield On ADAP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
0.50 |
0.05 |
39 |
0.1 |
0.03 (6.7%) |
| Dec 19 |
0.50 |
0.15 |
285 |
0.1 |
0.03 (6.7%) |
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