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 Fri 4:16 PM ET):
| CRISPR Therapeutics AG - Common Shares (CRSP) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 55.05 |
55.76 |
55.12 |
-1.49 |
2.9M |
- |
5.1B |
CRSP Dividend-Like Income Using Covered Calls
With CRSP at 55.12, 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% |
1.65 |
0.5 |
| 5% |
2.76 |
0.8 |
| 10% |
5.51 |
1.5 |
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 |
| Dec 5 |
56.00 |
1.90 |
29 |
6.6 |
0.24 (0.4%) |
| Dec 12 |
56.00 |
2.75 |
36 |
7.6 |
0.24 (0.4%) |
| 5% Yield On CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
56.00 |
1.90 |
29 |
6.6 |
0.24 (0.4%) |
| Dec 12 |
56.00 |
2.75 |
36 |
7.6 |
0.24 (0.4%) |
| 10% Yield On CRSP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
56.00 |
1.90 |
29 |
6.6 |
0.24 (0.4%) |
| Dec 12 |
56.00 |
2.75 |
36 |
7.6 |
0.24 (0.4%) |
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