ACMR Dividend Type Payments
Although ACMR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ACM Research, Inc. - Class A 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):
| ACM Research, Inc. - Class A (ACMR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 25.00 |
25.20 |
25.20 |
-0.22 |
538K |
16 |
1.6B |
ACMR Dividend-Like Income Using Covered Calls
With ACMR at 25.20, 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% |
0.76 |
0.2 |
| 5% |
1.26 |
0.3 |
| 10% |
2.52 |
0.7 |
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 ACMR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
26.00 |
2.30 |
60 |
3.8 |
0.80 (3.2%) |
| Jul 18 |
26.00 |
1.35 |
32 |
4.2 |
0.80 (3.2%) |
| 5% Yield On ACMR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
26.00 |
2.30 |
60 |
3.8 |
0.80 (3.2%) |
| Jul 18 |
26.00 |
1.35 |
32 |
4.2 |
0.80 (3.2%) |
| 10% Yield On ACMR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
26.00 |
2.30 |
60 |
3.8 |
0.80 (3.2%) |
| Jul 18 |
26.00 |
1.35 |
32 |
4.2 |
0.80 (3.2%) |
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