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 Thu 4:16 PM ET):
| Kiniksa Pharmaceuticals, Ltd. - Class A Ordinary Shares (KNSA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 38.05 |
39.43 |
38.92 |
+0.06 |
551K |
972 |
1.7B |
KNSA Dividend-Like Income Using Covered Calls
With KNSA at 38.92, 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% |
1.17 |
0.3 |
| 5% |
1.95 |
0.5 |
| 10% |
3.89 |
1.1 |
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 |
| Dec 19 |
40.00 |
0.50 |
65 |
0.8 |
0.57 (1.5%) |
| Nov 21 |
40.00 |
0.75 |
37 |
2.0 |
0.57 (1.5%) |
| 5% Yield On KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
40.00 |
0.50 |
65 |
0.8 |
0.57 (1.5%) |
| Nov 21 |
40.00 |
0.75 |
37 |
2.0 |
0.57 (1.5%) |
| 10% Yield On KNSA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
40.00 |
0.75 |
37 |
2.0 |
0.57 (1.5%) |
| Jan 16 |
40.00 |
3.00 |
93 |
3.2 |
0.57 (1.5%) |
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