ALKS Dividend Type Payments
Although ALKS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alkermes plc - 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):
| Alkermes plc - Ordinary Shares (ALKS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 28.52 | 29.23 | 28.97 | +0.60 | 1.0M | 17 | 4.7B |
ALKS Dividend-Like Income Using Covered Calls
With ALKS at 28.97, 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% | 0.87 | 0.2 |
| 5% | 1.45 | 0.4 |
| 10% | 2.90 | 0.8 |
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 ALKS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 30.00 | 1.10 | 43 | 2.6 | 0.77 (2.7%) | |
| Oct 18 | 30.00 | 0.40 | 15 | 2.7 | 0.77 (2.7%) | |
| 5% Yield On ALKS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 30.00 | 1.10 | 43 | 2.6 | 0.77 (2.7%) | |
| Oct 18 | 30.00 | 0.40 | 15 | 2.7 | 0.77 (2.7%) | |
| 10% Yield On ALKS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 30.00 | 1.10 | 43 | 2.6 | 0.77 (2.7%) | |
| Oct 18 | 30.00 | 0.40 | 15 | 2.7 | 0.77 (2.7%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
| 3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
| 4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
| 5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend | |
Want more examples? ALK Dividend | ALL Dividend
