CMPS Dividend Type Payments
Although CMPS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on COMPASS Pathways Plc - American Depository 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):
| COMPASS Pathways Plc - American Depository Shares (CMPS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 4.95 |
5.22 |
4.94 |
-0.30 |
3.1M |
- |
0.0B |
CMPS Dividend-Like Income Using Covered Calls
With CMPS at 4.94, 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% |
0.15 |
0.0 |
| 5% |
0.25 |
0.1 |
| 10% |
0.49 |
0.1 |
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 CMPS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
6.00 |
0.05 |
18 |
0.3 |
0.78 (15.8%) |
| May 15 |
12.00 |
0.10 |
165 |
0.1 |
6.78 (137.2%) |
| 5% Yield On CMPS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
6.00 |
0.05 |
18 |
0.3 |
0.78 (15.8%) |
| May 15 |
6.00 |
0.90 |
165 |
0.5 |
0.78 (15.8%) |
| 10% Yield On CMPS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
6.00 |
0.05 |
18 |
0.3 |
0.78 (15.8%) |
| May 15 |
6.00 |
0.90 |
165 |
0.5 |
0.78 (15.8%) |
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