MPLN Dividend Type Payments
Although MPLN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MultiPlan Corporation Class A 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):
| MultiPlan Corporation Class A (MPLN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 6.08 |
6.47 |
6.18 |
-0.89 |
169K |
- |
0.1B |
MPLN Dividend-Like Income Using Covered Calls
With MPLN at 6.18, 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% |
0.19 |
0.1 |
| 5% |
0.31 |
0.1 |
| 10% |
0.62 |
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 MPLN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
7.00 |
1.25 |
154 |
0.8 |
0.53 (8.6%) |
| Dec 19 |
7.00 |
1.85 |
400 |
0.5 |
0.53 (8.6%) |
| 5% Yield On MPLN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
7.00 |
1.25 |
154 |
0.8 |
0.53 (8.6%) |
| Dec 19 |
7.00 |
1.85 |
400 |
0.5 |
0.53 (8.6%) |
| 10% Yield On MPLN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
7.00 |
1.25 |
154 |
0.8 |
0.53 (8.6%) |
| Dec 19 |
7.00 |
1.85 |
400 |
0.5 |
0.53 (8.6%) |
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