WVE Dividend Type Payments
Although WVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wave Life Sciences Ltd. - 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 11:05 AM ET):
| Wave Life Sciences Ltd. - Ordinary Shares (WVE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 10.47 |
10.49 |
10.48 |
+0.21 |
81K |
- |
1.6B |
WVE Dividend-Like Income Using Covered Calls
With WVE at 10.48, 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% |
0.31 |
0.1 |
| 5% |
0.52 |
0.1 |
| 10% |
1.05 |
0.3 |
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 WVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
12.50 |
0.75 |
35 |
2.1 |
2.01 (19.2%) |
| Oct 17 |
12.50 |
1.95 |
218 |
0.9 |
2.01 (19.2%) |
| 5% Yield On WVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
12.50 |
0.75 |
35 |
2.1 |
2.01 (19.2%) |
| Oct 17 |
12.50 |
1.95 |
218 |
0.9 |
2.01 (19.2%) |
| 10% Yield On WVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
12.50 |
0.75 |
35 |
2.1 |
2.01 (19.2%) |
| Oct 17 |
12.50 |
1.95 |
218 |
0.9 |
2.01 (19.2%) |
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