ELLI Dividend Type Payments

ELLIE MAE dividend

Although ELLI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ELLIE MAE 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):

ELLIE MAE (ELLI)
Bid Ask Last Change Volume P/E Market Cap
100.00 114.00 102.44 -1.54 552K 99 3.6B

ELLI Dividend-Like Income Using Covered Calls

With ELLI at 102.44, 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% 3.07 0.8
5% 5.12 1.4
10% 10.24 2.8

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
Oct 19 115.00 1.00 66 1.5 1.00 (1.0%)
Dec 21 125.00 1.45 129 1.1 11.00 (10.7%)
5% Yield On ELLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 115.00 1.00 66 1.5 1.00 (1.0%)
Dec 21 120.00 2.05 129 1.6 6.00 (5.9%)

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