BLUE Dividend Type Payments
Although BLUE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on bluebird bio, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:45 PM ET):
bluebird bio, Inc. (BLUE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
1.00 | 1.01 | 1.01 | +0.06 | 1.8M | - | 0.1B |
BLUE Dividend-Like Income Using Covered Calls
With BLUE at 1.01, 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% | 0.03 | 0.0 |
5% | 0.05 | 0.0 |
10% | 0.10 | 0.0 |
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 BLUE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 21 | 1.50 | 0.05 | 60 | 0.1 | 0.49 (48.5%) | |
Aug 16 | 1.50 | 0.15 | 116 | 0.1 | 0.49 (48.5%) |
5% Yield On BLUE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 21 | 1.50 | 0.05 | 60 | 0.1 | 0.49 (48.5%) | |
Aug 16 | 1.50 | 0.15 | 116 | 0.1 | 0.49 (48.5%) |
10% Yield On BLUE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 21 | 1.50 | 0.05 | 60 | 0.1 | 0.49 (48.5%) | |
Aug 16 | 1.50 | 0.15 | 116 | 0.1 | 0.49 (48.5%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | EYPT dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | CVNA dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | TSLA dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | SNAP dividend |
Want more examples? BLOK Dividend | BLV Dividend