AVDL Dividend Type Payments
Although AVDL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Avadel Pharmaceuticals plc - Ordinary Share to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:55 PM ET):
| Avadel Pharmaceuticals plc - Ordinary Share (AVDL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 15.22 |
15.24 |
15.23 |
-0.17 |
541K |
- |
1.5B |
AVDL Dividend-Like Income Using Covered Calls
With AVDL at 15.23, 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% |
0.46 |
0.1 |
| 5% |
0.76 |
0.2 |
| 10% |
1.52 |
0.4 |
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 AVDL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
17.50 |
0.25 |
33 |
0.8 |
2.26 (14.8%) |
| Sep 19 |
17.50 |
0.10 |
5 |
2.0 |
2.26 (14.8%) |
| 5% Yield On AVDL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
17.50 |
0.25 |
33 |
0.8 |
2.26 (14.8%) |
| Sep 19 |
17.50 |
0.10 |
5 |
2.0 |
2.26 (14.8%) |
| 10% Yield On AVDL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
17.50 |
0.25 |
33 |
0.8 |
2.26 (14.8%) |
| Sep 19 |
17.50 |
0.10 |
5 |
2.0 |
2.26 (14.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
