BCEI Dividend Type Payments

Bonanza Creek Energy, Inc dividend

Although BCEI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bonanza Creek Energy, 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):

Bonanza Creek Energy, Inc (BCEI)
Bid Ask Last Change Volume P/E Market Cap
24.14 28.00 24.16 +0.48 101K 8.7 0.5B

BCEI Dividend-Like Income Using Covered Calls

With BCEI at 24.16, 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% 0.72 0.2
5% 1.21 0.3
10% 2.42 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 BCEI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 30.00 0.25 56 0.4 2.00 (8.3%)
Jul 19 35.00 0.40 148 0.3 7.00 (29.0%)
5% Yield On BCEI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 30.00 0.25 56 0.4 2.00 (8.3%)
Jul 19 30.00 1.10 148 0.7 2.00 (8.3%)
10% Yield On BCEI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 30.00 1.10 148 0.7 2.00 (8.3%)
Oct 18 30.00 1.80 239 0.8 2.00 (8.3%)

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

 
Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.AMRN dividend
2.EEM dividend 7.GE dividend   2.FIT dividend
3.SPY dividend 8.LLY dividend   3.ASND dividend
4.QQQ dividend 9.BAC dividend   4.IMGN dividend
5.FXI dividend 10.GLD dividend   5.OSTK dividend

Want more examples? BCE Dividend | BCI Dividend