BIGC Dividend Type Payments
Although BIGC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BigCommerce Holdings, Inc. - Series 1 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:00 PM ET):
| BigCommerce Holdings, Inc. - Series 1 (BIGC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 5.34 |
5.35 |
5.34 |
+0.18 |
714K |
- |
0.4B |
BIGC Dividend-Like Income Using Covered Calls
With BIGC at 5.34, 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% |
0.16 |
0.0 |
| 5% |
0.27 |
0.1 |
| 10% |
0.53 |
0.1 |
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 BIGC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
7.50 |
0.30 |
159 |
0.2 |
2.15 (40.3%) |
| Jul 18 |
10.00 |
0.05 |
68 |
0.1 |
4.65 (87.1%) |
| 5% Yield On BIGC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
7.50 |
0.30 |
159 |
0.2 |
2.15 (40.3%) |
| Jul 18 |
10.00 |
0.05 |
68 |
0.1 |
4.65 (87.1%) |
| 10% Yield On BIGC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
7.50 |
0.30 |
159 |
0.2 |
2.15 (40.3%) |
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