ELLI Dividend Type Payments

Ellie Mae, Inc dividend

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

Ellie Mae, Inc (ELLI)
Bid Ask Last Change Volume P/E Market Cap
64.26 67.50 64.29 +0.26 378K - 0.0B

ELLI Dividend-Like Income Using Covered Calls

With ELLI at 64.29, 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% 1.93 0.5
5% 3.21 0.9
10% 6.43 1.8

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 ELLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 70.00 0.15 11 1.4 2.50 (3.9%)
Jan 18 75.00 0.35 39 0.9 7.50 (11.7%)
5% Yield On ELLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 70.00 0.15 11 1.4 2.50 (3.9%)
Jan 18 75.00 0.35 39 0.9 7.50 (11.7%)
10% Yield On ELLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 70.00 0.90 39 2.3 2.50 (3.9%)
Jul 19 75.00 4.30 221 1.9 7.50 (11.7%)

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

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? ELGX Dividend | ELP Dividend