DRNA Dividend Type Payments

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

DICERNA PHARMACEUTICALS (DRNA)
Bid Ask Last Change Volume P/E Market Cap
9.10 14.74 14.76 +0.16 303K - 0.8B

DRNA Dividend-Like Income Using Covered Calls

With DRNA at 14.76, 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% 0.44 0.1
5% 0.74 0.2
10% 1.48 0.4

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 DRNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.50 0.05 40 0.1 2.76 (18.7%)
Oct 19 17.50 0.30 68 0.4 2.76 (18.7%)
5% Yield On DRNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 15.00 0.50 40 1.3 0.26 (1.8%)
Oct 19 17.50 0.30 68 0.4 2.76 (18.7%)
10% Yield On DRNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 15.00 0.50 40 1.3 0.26 (1.8%)
Oct 19 17.50 0.30 68 0.4 2.76 (18.7%)

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

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.SSTK dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.VIPS dividend
4.SPX dividend 9.GLD dividend   4.HUYA dividend
5.XLF dividend 10.FB dividend   5.SWCH dividend

Want more examples? DRN Dividend | DRO Dividend