NTLA Dividend Type Payments

Although NTLA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INTELLIA THERAPEUTICS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

INTELLIA THERAPEUTICS (NTLA)
Bid Ask Last Change Volume P/E Market Cap
27.06 28.49 27.87 -0.13 310K - 1.2B

NTLA Dividend-Like Income Using Covered Calls

With NTLA at 27.87, 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% 0.84 0.2
5% 1.39 0.4
10% 2.79 0.8

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 NTLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 35.00 0.25 36 0.7 6.51 (23.4%)
Oct 19 40.00 0.25 64 0.4 11.51 (41.3%)
5% Yield On NTLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 35.00 0.25 36 0.7 6.51 (23.4%)
Oct 19 40.00 0.25 64 0.4 11.51 (41.3%)
10% Yield On NTLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 1.20 36 3.3 1.51 (5.4%)
Oct 19 35.00 0.75 64 1.2 6.51 (23.4%)

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