KTWO Dividend Type Payments

K2M GROUP HOLDINGS INC dividend

Although KTWO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on K2M GROUP HOLDINGS INC 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):

K2M GROUP HOLDINGS INC (KTWO)
Bid Ask Last Change Volume P/E Market Cap
17.00 20.08 20.08 -0.02 168K - 0.9B

KTWO Dividend-Like Income Using Covered Calls

With KTWO at 20.08, 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% 0.60 0.2
5% 1.00 0.3
10% 2.01 0.6

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 KTWO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 20.00 0.20 3 4.0 0.00 (0.0%)
Sep 21 22.50 0.10 38 0.3 2.42 (12.1%)
5% Yield On KTWO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 20.00 0.20 3 4.0 0.00 (0.0%)
Sep 21 20.00 0.85 38 2.0 0.00 (0.0%)
10% Yield On KTWO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 20.00 0.20 3 4.0 0.00 (0.0%)
Sep 21 20.00 0.85 38 2.0 0.00 (0.0%)

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