ZLAB Dividend Type Payments
Although ZLAB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zai Lab Limited - American Depositary 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):
Zai Lab Limited - American Depositary Shares (ZLAB) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
24.01 |
26.00 |
25.33 |
0.00 |
425K |
- |
0.0B |
ZLAB Dividend-Like Income Using Covered Calls
With ZLAB at 25.33, 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% |
0.76 |
0.2 |
5% |
1.27 |
0.3 |
10% |
2.53 |
0.7 |
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 ZLAB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Dec 20 |
35.00 |
0.25 |
71 |
0.4 |
9.00 (35.5%) |
Jan 17 |
35.00 |
0.60 |
99 |
0.6 |
9.00 (35.5%) |
5% Yield On ZLAB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Dec 20 |
35.00 |
0.25 |
71 |
0.4 |
9.00 (35.5%) |
Jan 17 |
35.00 |
0.60 |
99 |
0.6 |
9.00 (35.5%) |
10% Yield On ZLAB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Dec 19 |
30.00 |
5.30 |
435 |
1.2 |
4.00 (15.8%) |
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