LLNW Dividend Type Payments

LIMELIGHT NETWORKS dividend

Although LLNW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LIMELIGHT NETWORKS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:40 AM ET):

LIMELIGHT NETWORKS (LLNW)
Bid Ask Last Change Volume P/E Market Cap
5.05 5.06 5.06 -0.02 302K 42 0.6B

LLNW Dividend-Like Income Using Covered Calls

With LLNW at 5.06, 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% 0.15 0.0
5% 0.25 0.1
10% 0.51 0.1

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 LLNW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 6.00 0.20 92 0.2 0.94 (18.6%)
Mar 15 8.00 0.10 176 0.1 2.94 (58.1%)
5% Yield On LLNW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 6.00 0.20 92 0.2 0.94 (18.6%)
Mar 15 7.00 0.20 176 0.1 1.94 (38.3%)
10% Yield On LLNW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 6.00 0.20 92 0.2 0.94 (18.6%)
Mar 15 6.00 0.40 176 0.2 0.94 (18.6%)

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

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.AMD dividend   1.ANAB dividend
2.EEM dividend 7.FXI dividend   2.TLRY dividend
3.SPX dividend 8.BABA dividend   3.TGTX dividend
4.MU dividend 9.USO dividend   4.CRON dividend
5.FTV dividend 10.GLD dividend   5.GERN dividend

Want more examples? LLL Dividend | LLY Dividend