AUPH Dividend Type Payments
Although AUPH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Aurinia Pharmaceuticals Inc - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:25 PM ET):
| Aurinia Pharmaceuticals Inc - Common Shares (AUPH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.92 |
8.93 |
8.92 |
-0.07 |
754K |
32 |
1.2B |
AUPH Dividend-Like Income Using Covered Calls
With AUPH at 8.92, 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% |
0.27 |
0.1 |
| 5% |
0.45 |
0.1 |
| 10% |
0.89 |
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 AUPH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
10.00 |
0.20 |
31 |
0.6 |
1.07 (12.0%) |
| Oct 17 |
10.00 |
0.40 |
94 |
0.4 |
1.07 (12.0%) |
| 5% Yield On AUPH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
10.00 |
0.20 |
31 |
0.6 |
1.07 (12.0%) |
| Oct 17 |
10.00 |
0.40 |
94 |
0.4 |
1.07 (12.0%) |
| 10% Yield On AUPH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
10.00 |
0.20 |
31 |
0.6 |
1.07 (12.0%) |
| Oct 17 |
10.00 |
0.40 |
94 |
0.4 |
1.07 (12.0%) |
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