ALDR Dividend Type Payments

Although ALDR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alder BioPharmaceuticals, Inc 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):

Alder BioPharmaceuticals, Inc (ALDR)
Bid Ask Last Change Volume P/E Market Cap
9.45 11.60 11.11 -0.09 632K - 0.0B

ALDR Dividend-Like Income Using Covered Calls

With ALDR at 11.11, here's a table showing how big the annual "dividend" (ie. 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% 0.33 0.1
5% 0.56 0.2
10% 1.11 0.3

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 ALDR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 12.50 0.25 36 0.7 0.90 (8.1%)
Apr 18 17.50 0.15 126 0.1 5.90 (53.1%)
5% Yield On ALDR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 12.50 0.25 36 0.7 0.90 (8.1%)
Apr 18 15.00 0.35 126 0.3 3.40 (30.6%)
10% Yield On ALDR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 12.50 0.25 36 0.7 0.90 (8.1%)
Apr 18 12.50 0.95 126 0.8 0.90 (8.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
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5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? ALD Dividend | ALDX Dividend