MLNX Dividend Type Payments
Although MLNX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MELLANOX TECHNOLOGIES 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):
| MELLANOX TECHNOLOGIES (MLNX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 73.27 | 80.00 | 73.27 | +1.38 | 304K | 68 | 3.8B |
MLNX Dividend-Like Income Using Covered Calls
With MLNX at 73.27, 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% | 2.20 | 0.6 |
| 5% | 3.66 | 1.0 |
| 10% | 7.33 | 2.0 |
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 MLNX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 16 | 85.00 | 0.35 | 32 | 1.1 | 5.00 (6.8%) | |
| Dec 21 | 87.50 | 0.60 | 67 | 0.9 | 7.50 (10.2%) | |
| 5% Yield On MLNX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 16 | 85.00 | 0.35 | 32 | 1.1 | 5.00 (6.8%) | |
| Dec 21 | 85.00 | 0.85 | 67 | 1.3 | 5.00 (6.8%) | |
| 10% Yield On MLNX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 16 | 80.00 | 1.05 | 32 | 3.3 | 0.00 (0.0%) | |
| Dec 21 | 80.00 | 1.90 | 67 | 2.8 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | BAC dividend | 1. | NBEV dividend | |
| 2. | SPX dividend | 7. | MU dividend | 2. | CRON dividend | |
| 3. | EEM dividend | 8. | FXI dividend | 3. | ARWR dividend | |
| 4. | QQQ dividend | 9. | AMD dividend | 4. | TLRY dividend | |
| 5. | PBR dividend | 10. | XLF dividend | 5. | IBM dividend | |
Want more examples? MLNT Dividend | MLPA Dividend
