BIGC Dividend Type Payments
Although BIGC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BigCommerce Holdings, Inc. - Series 1 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| BigCommerce Holdings, Inc. - Series 1 (BIGC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 5.89 |
6.06 |
6.04 |
+0.07 |
589K |
- |
0.5B |
BIGC Dividend-Like Income Using Covered Calls
With BIGC at 6.04, 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% |
0.18 |
0.0 |
| 5% |
0.30 |
0.1 |
| 10% |
0.60 |
0.2 |
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 BIGC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
7.50 |
0.20 |
60 |
0.3 |
1.44 (23.8%) |
| Apr 17 |
7.50 |
0.45 |
150 |
0.3 |
1.44 (23.8%) |
| 5% Yield On BIGC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
7.50 |
0.20 |
60 |
0.3 |
1.44 (23.8%) |
| Apr 17 |
7.50 |
0.45 |
150 |
0.3 |
1.44 (23.8%) |
| 10% Yield On BIGC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
7.50 |
0.20 |
60 |
0.3 |
1.44 (23.8%) |
| Apr 17 |
7.50 |
0.45 |
150 |
0.3 |
1.44 (23.8%) |
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