NVTA Dividend Type Payments

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

INVITAE CORP (NVTA)
Bid Ask Last Change Volume P/E Market Cap
9.82 10.95 10.48 +0.10 1.4M - 0.7B

NVTA Dividend-Like Income Using Covered Calls

With NVTA at 10.48, 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% 0.31 0.1
5% 0.52 0.1
10% 1.05 0.3

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 NVTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 12.50 0.05 37 0.1 1.55 (14.8%)
Dec 21 12.50 0.60 128 0.5 1.55 (14.8%)
5% Yield On NVTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 12.50 0.60 128 0.5 1.55 (14.8%)
Mar 15 15.00 0.55 212 0.3 4.05 (38.6%)
10% Yield On NVTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 12.50 0.60 128 0.5 1.55 (14.8%)
Mar 15 12.50 1.05 212 0.5 1.55 (14.8%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? NVT Dividend | NVTR Dividend