CRSP Dividend Type Payments
Although CRSP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CRISPR Therapeutics AG - Common Shares 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):
| CRISPR Therapeutics AG - Common Shares (CRSP) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 41.00 |
41.30 |
41.06 |
-3.57 |
2.3M |
- |
3.8B |
CRSP Dividend-Like Income Using Covered Calls
With CRSP at 41.06, 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% |
1.23 |
0.3 |
| 5% |
2.05 |
0.6 |
| 10% |
4.11 |
1.1 |
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 CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
42.50 |
0.25 |
3 |
8.3 |
1.20 (2.9%) |
| Dec 27 |
42.00 |
0.85 |
10 |
8.5 |
0.70 (1.7%) |
| 5% Yield On CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
42.50 |
0.25 |
3 |
8.3 |
1.20 (2.9%) |
| Dec 27 |
42.00 |
0.85 |
10 |
8.5 |
0.70 (1.7%) |
| 10% Yield On CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
42.50 |
0.25 |
3 |
8.3 |
1.20 (2.9%) |
| Dec 27 |
42.00 |
0.85 |
10 |
8.5 |
0.70 (1.7%) |
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