CERS Dividend Type Payments
Although CERS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cerus Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Cerus Corporation (CERS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 1.62 | 1.78 | 1.64 | -0.04 | 737K | - | 0.3B |
CERS Dividend-Like Income Using Covered Calls
With CERS at 1.64, 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% | 0.05 | 0.0 |
| 5% | 0.08 | 0.0 |
| 10% | 0.16 | 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 CERS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 16 | 2.00 | 0.15 | 122 | 0.1 | 0.22 (13.4%) | |
| Nov 15 | 2.00 | 0.20 | 213 | 0.1 | 0.22 (13.4%) | |
| 5% Yield On CERS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 16 | 2.00 | 0.15 | 122 | 0.1 | 0.22 (13.4%) | |
| Nov 15 | 2.00 | 0.20 | 213 | 0.1 | 0.22 (13.4%) | |
| 10% Yield On CERS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 16 | 2.00 | 0.15 | 122 | 0.1 | 0.22 (13.4%) | |
| Nov 15 | 2.00 | 0.20 | 213 | 0.1 | 0.22 (13.4%) | |
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
| 2. | IWM dividend | 7. | FXI dividend | 2. | DJT dividend | |
| 3. | QQQ dividend | 8. | AAPL dividend | 3. | CVNA dividend | |
| 4. | TSLA dividend | 9. | HYG dividend | 4. | FSLY dividend | |
| 5. | SLV dividend | 10. | NVDA dividend | 5. | EYPT dividend | |
Want more examples? CENX Dividend | CEVA Dividend
