NVRO Dividend Type Payments

Although NVRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NEVRO CORP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:45 PM ET):

NEVRO CORP (NVRO)
Bid Ask Last Change Volume P/E Market Cap
58.95 59.08 58.93 -0.30 110K - 1.8B

NVRO Dividend-Like Income Using Covered Calls

With NVRO at 58.93, 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% 1.77 0.5
5% 2.95 0.8
10% 5.89 1.6

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 NVRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 70.00 0.15 26 0.6 10.92 (18.5%)
Nov 16 75.00 0.40 54 0.7 15.92 (27.0%)
5% Yield On NVRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 65.00 0.65 26 2.5 5.92 (10.0%)
Nov 16 70.00 0.90 54 1.7 10.92 (18.5%)
10% Yield On NVRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 65.00 0.65 26 2.5 5.92 (10.0%)
Nov 16 70.00 0.90 54 1.7 10.92 (18.5%)

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.FXI dividend   1.GERN dividend
2.EEM dividend 7.AMD dividend   2.TGTX dividend
3.SPX dividend 8.BABA dividend   3.TLRY dividend
4.MU dividend 9.USO dividend   4.BBBY dividend
5.FTV dividend 10.EWZ dividend   5.CRON dividend

Want more examples? NVO Dividend | NVS Dividend