NVCR Dividend Type Payments
Although NVCR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NovoCure Limited - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| NovoCure Limited - Ordinary Shares (NVCR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 17.56 | 18.19 | 17.76 | -0.39 | 661K | - | 2.0B |
NVCR Dividend-Like Income Using Covered Calls
With NVCR at 17.76, 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% | 0.53 | 0.1 |
| 5% | 0.89 | 0.2 |
| 10% | 1.78 | 0.5 |
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 NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 19.00 | 0.25 | 12 | 2.1 | 0.81 (4.6%) | |
| Sep 19 | 19.00 | 2.00 | 138 | 1.4 | 0.81 (4.6%) | |
| 5% Yield On NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 19.00 | 0.25 | 12 | 2.1 | 0.81 (4.6%) | |
| Sep 19 | 19.00 | 2.00 | 138 | 1.4 | 0.81 (4.6%) | |
| 10% Yield On NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 19.00 | 0.25 | 12 | 2.1 | 0.81 (4.6%) | |
| Sep 19 | 19.00 | 2.00 | 138 | 1.4 | 0.81 (4.6%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | FXI dividend | 2. | IONQ dividend | |
| 3. | TLT dividend | 8. | TSLA dividend | 3. | WOLF dividend | |
| 4. | SLV dividend | 9. | GLD dividend | 4. | HIMS dividend | |
| 5. | QQQ dividend | 10. | SNAP dividend | 5. | EOSE dividend | |
Want more examples? NVAX Dividend | NVDA Dividend
