RARE Dividend Type Payments

Ultragenyx Pharmaceuticals, Inc dividend

Although RARE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ultragenyx Pharmaceuticals, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:15 AM ET):

Ultragenyx Pharmaceuticals, Inc (RARE)
Bid Ask Last Change Volume P/E Market Cap
44.51 44.64 44.58 +0.53 121K - 0.0B

RARE Dividend-Like Income Using Covered Calls

With RARE at 44.58, 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% 1.34 0.4
5% 2.23 0.6
10% 4.46 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 RARE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.05 3 1.7 10.36 (23.2%)
Jan 18 60.00 0.15 31 0.5 15.36 (34.5%)
5% Yield On RARE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.05 3 1.7 10.36 (23.2%)
Jan 18 55.00 0.35 31 1.1 10.36 (23.2%)
10% Yield On RARE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.05 3 1.7 10.36 (23.2%)
Jan 18 50.00 1.35 31 4.4 5.36 (12.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1. dividend
2.EEM dividend 7.EWZ dividend   2. dividend
3.SPX dividend 8.BAC dividend   3. dividend
4.QQQ dividend 9.GE dividend   4. dividend
5.IWM dividend 10.HYG dividend   5. dividend

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