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 Tue 4:16 PM ET):
| Wave Life Sciences Ltd. - Ordinary Shares (WVE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 14.10 |
14.50 |
14.45 |
+1.00 |
1.4M |
- |
2.1B |
WVE Dividend-Like Income Using Covered Calls
With WVE at 14.45, 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% |
0.43 |
0.1 |
| 5% |
0.72 |
0.2 |
| 10% |
1.45 |
0.4 |
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 |
| Dec 20 |
15.00 |
1.20 |
4 |
30.0 |
0.50 (3.5%) |
| Jan 17 |
15.00 |
1.45 |
32 |
4.5 |
0.50 (3.5%) |
| 5% Yield On WVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
15.00 |
1.20 |
4 |
30.0 |
0.50 (3.5%) |
| Jan 17 |
15.00 |
1.45 |
32 |
4.5 |
0.50 (3.5%) |
| 10% Yield On WVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
15.00 |
1.20 |
4 |
30.0 |
0.50 (3.5%) |
| Jan 17 |
15.00 |
1.45 |
32 |
4.5 |
0.50 (3.5%) |
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