CARA Dividend Type Payments
Although CARA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cara Therapeutics, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:55 PM ET):
| Cara Therapeutics, Inc. (CARA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 0.46 | 0.47 | 0.46 | +0.04 | 1.8M | - | 0.0B |
CARA Dividend-Like Income Using Covered Calls
With CARA at 0.46, 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:
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | NMRA dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | RGTI dividend | |
| 3. | AAPL dividend | 8. | TSLA dividend | 3. | QBTS dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | IONQ dividend | |
| 5. | XLF dividend | 10. | TLT dividend | 5. | X dividend | |
Want more examples? CAR Dividend | CARE Dividend
