KNSA Dividend Type Payments
Although KNSA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kiniksa Pharmaceuticals, Ltd. - Class A Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Kiniksa Pharmaceuticals, Ltd. - Class A Ordinary Shares (KNSA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 19.80 |
21.00 |
20.59 |
+0.10 |
523K |
- |
0.9B |
KNSA Dividend-Like Income Using Covered Calls
With KNSA at 20.59, 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% |
0.62 |
0.2 |
| 5% |
1.03 |
0.3 |
| 10% |
2.06 |
0.6 |
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 KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
30.00 |
0.10 |
29 |
0.3 |
9.00 (43.7%) |
| Apr 17 |
22.50 |
1.20 |
119 |
1.0 |
1.50 (7.3%) |
| 5% Yield On KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
30.00 |
0.10 |
29 |
0.3 |
9.00 (43.7%) |
| Apr 17 |
22.50 |
1.20 |
119 |
1.0 |
1.50 (7.3%) |
| 10% Yield On KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
22.50 |
1.20 |
119 |
1.0 |
1.50 (7.3%) |
| Jul 18 |
22.50 |
2.40 |
211 |
1.1 |
1.50 (7.3%) |
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