AXDX Dividend Type Payments

Although AXDX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Accelerate Diagnostics, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Accelerate Diagnostics, Inc (AXDX)
Bid Ask Last Change Volume P/E Market Cap
19.50 20.95 19.82 -0.43 110K - 1.1B

AXDX Dividend-Like Income Using Covered Calls

With AXDX at 19.82, 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% 0.59 0.2
5% 0.99 0.3
10% 1.98 0.5

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 AXDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 22.50 0.05 25 0.2 1.55 (7.8%)
Aug 16 25.00 0.15 53 0.3 4.05 (20.4%)
5% Yield On AXDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 25.00 0.15 53 0.3 4.05 (20.4%)
Nov 15 25.00 0.50 144 0.3 4.05 (20.4%)
10% Yield On AXDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 22.50 0.50 53 0.9 1.55 (7.8%)
Nov 15 22.50 1.00 144 0.7 1.55 (7.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.BYND dividend
2.SPX dividend 7.OIH dividend   2.BB dividend
3.EEM dividend 8.QCOM dividend   3.ITCI dividend
4.QQQ dividend 9.FXI dividend   4.KPTI dividend
5.IWM dividend 10.AAPL dividend   5.OSTK dividend

Want more examples? AXAS Dividend | AXE Dividend