RDUS Dividend Type Payments

Radius Health, Inc dividend

Although RDUS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Radius Health, Inc 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):

Radius Health, Inc (RDUS)
Bid Ask Last Change Volume P/E Market Cap
16.50 22.00 19.18 +0.79 440K - 0.8B

RDUS Dividend-Like Income Using Covered Calls

With RDUS at 19.18, 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% 0.58 0.2
5% 0.96 0.3
10% 1.92 0.5

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 RDUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 25.00 0.10 56 0.2 3.00 (15.6%)
Jul 19 25.00 0.70 148 0.5 3.00 (15.6%)
5% Yield On RDUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 22.50 0.40 56 0.7 0.50 (2.6%)
Jul 19 25.00 0.70 148 0.5 3.00 (15.6%)
10% Yield On RDUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 22.50 0.40 56 0.7 0.50 (2.6%)
Jul 19 22.50 1.10 148 0.7 0.50 (2.6%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.AMRN dividend
2.EEM dividend 7.GE dividend   2.FIT dividend
3.SPY dividend 8.LLY dividend   3.ASND dividend
4.QQQ dividend 9.BAC dividend   4.IMGN dividend
5.FXI dividend 10.GLD dividend   5.OSTK dividend

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