CRON Dividend Type Payments
Although CRON has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cronos Group Inc. - Common Share to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Cronos Group Inc. - Common Share (CRON) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 1.88 |
1.96 |
1.89 |
-0.06 |
1.3M |
- |
0.7B |
CRON Dividend-Like Income Using Covered Calls
With CRON at 1.89, 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% |
0.06 |
0.0 |
| 5% |
0.09 |
0.0 |
| 10% |
0.19 |
0.1 |
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 CRON Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
2.00 |
0.05 |
31 |
0.2 |
0.04 (2.1%) |
| Apr 17 |
2.00 |
0.05 |
121 |
0.0 |
0.04 (2.1%) |
| 5% Yield On CRON Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
2.00 |
0.05 |
31 |
0.2 |
0.04 (2.1%) |
| Apr 17 |
2.00 |
0.05 |
121 |
0.0 |
0.04 (2.1%) |
| 10% Yield On CRON Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
2.00 |
0.05 |
31 |
0.2 |
0.04 (2.1%) |
| Feb 21 |
2.00 |
0.05 |
66 |
0.1 |
0.04 (2.1%) |
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