KNSA Dividend Type Payments
Although KNSA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kiniksa Pharmaceuticals, Ltd. - Class A Ordinary Shares 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):
| Kiniksa Pharmaceuticals, Ltd. - Class A Ordinary Shares (KNSA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 25.46 |
26.50 |
25.88 |
+4.41 |
2.0M |
- |
0.9B |
KNSA Dividend-Like Income Using Covered Calls
With KNSA at 25.88, 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% |
0.78 |
0.2 |
| 5% |
1.29 |
0.4 |
| 10% |
2.59 |
0.7 |
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 KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
30.00 |
0.05 |
18 |
0.3 |
3.50 (13.5%) |
| Oct 17 |
30.00 |
1.60 |
172 |
0.9 |
3.50 (13.5%) |
| 5% Yield On KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
30.00 |
1.60 |
172 |
0.9 |
3.50 (13.5%) |
| Jul 18 |
30.00 |
0.40 |
81 |
0.5 |
3.50 (13.5%) |
| 10% Yield On KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
30.00 |
1.60 |
172 |
0.9 |
3.50 (13.5%) |
| Jun 20 |
30.00 |
0.40 |
53 |
0.8 |
3.50 (13.5%) |
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