CRSP Dividend Type Payments
Although CRSP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CRISPR Therapeutics AG - 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 4:16 PM ET):
| CRISPR Therapeutics AG - Common Shares (CRSP) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 71.10 |
72.90 |
71.82 |
+2.44 |
2.3M |
- |
6.3B |
CRSP Dividend-Like Income Using Covered Calls
With CRSP at 71.82, 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% |
2.15 |
0.6 |
| 5% |
3.59 |
1.0 |
| 10% |
7.18 |
2.0 |
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 CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
105.00 |
0.15 |
24 |
0.6 |
32.10 (44.7%) |
| Nov 14 |
100.00 |
0.25 |
31 |
0.8 |
27.10 (37.7%) |
| 5% Yield On CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
73.00 |
3.30 |
24 |
13.8 |
0.10 (0.1%) |
| Nov 14 |
73.00 |
4.70 |
31 |
15.2 |
0.10 (0.1%) |
| 10% Yield On CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
73.00 |
3.30 |
24 |
13.8 |
0.10 (0.1%) |
| Nov 14 |
73.00 |
4.70 |
31 |
15.2 |
0.10 (0.1%) |
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