RNA Dividend Type Payments
Although RNA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Avidity Biosciences, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:10 AM ET):
| Avidity Biosciences, Inc. (RNA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 72.53 | 72.54 | 72.53 | 0.00 | 83K | - | 11B |
RNA Dividend-Like Income Using Covered Calls
With RNA at 72.53, 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% | 2.18 | 0.6 |
| 5% | 3.63 | 1.0 |
| 10% | 7.25 | 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:
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | WYFI dividend | |
| 2. | IBIT dividend | 7. | AAPL dividend | 2. | CRVS dividend | |
| 3. | TLT dividend | 8. | NFLX dividend | 3. | ZVRA dividend | |
| 4. | INTC dividend | 9. | QQQ dividend | 4. | TMQ dividend | |
| 5. | SPY dividend | 10. | GLD dividend | 5. | OSCR dividend | |
Want more examples? RMTI Dividend | RNG Dividend
