PCRX Dividend Type Payments

PACIRA PHARMACEUTICALS dividend

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

PACIRA PHARMACEUTICALS (PCRX)
Bid Ask Last Change Volume P/E Market Cap
42.50 49.35 45.00 -1.35 547K - 1.9B

PCRX Dividend-Like Income Using Covered Calls

With PCRX at 45.00, 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% 1.35 0.4
5% 2.25 0.6
10% 4.50 1.2

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 PCRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 52.50 0.15 33 0.5 3.15 (7.0%)
Oct 19 55.00 0.30 61 0.5 5.65 (12.6%)
5% Yield On PCRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 50.00 0.40 33 1.2 0.65 (1.4%)
Oct 19 52.50 0.50 61 0.8 3.15 (7.0%)
10% Yield On PCRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 50.00 0.90 61 1.5 0.65 (1.4%)
Nov 16 50.00 1.75 89 2.0 0.65 (1.4%)

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

Want more examples? PCOM Dividend | PCSB Dividend