WVE Dividend Type Payments
Although WVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wave Life Sciences Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:05 PM ET):
Wave Life Sciences Ltd. - Ordinary Shares (WVE) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
9.05 |
9.08 |
9.08 |
+0.89 |
7.0M |
- |
1.0B |
WVE Dividend-Like Income Using Covered Calls
With WVE at 9.08, 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% |
0.27 |
0.1 |
5% |
0.45 |
0.1 |
10% |
0.91 |
0.2 |
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 WVE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
10.00 |
0.95 |
52 |
1.8 |
0.92 (10.1%) |
Oct 18 |
10.00 |
0.65 |
24 |
2.7 |
0.92 (10.1%) |
5% Yield On WVE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
10.00 |
0.95 |
52 |
1.8 |
0.92 (10.1%) |
Oct 18 |
10.00 |
0.65 |
24 |
2.7 |
0.92 (10.1%) |
10% Yield On WVE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
10.00 |
0.95 |
52 |
1.8 |
0.92 (10.1%) |
Oct 18 |
10.00 |
0.65 |
24 |
2.7 |
0.92 (10.1%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial