SBIO Dividend Type Payments

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

ALPS MEDICAL BREAKTHROUGHS E (SBIO)
Bid Ask Last Change Volume P/E Market Cap
37.50 38.40 37.64 +0.15 288K - 2.2B

SBIO Dividend-Like Income Using Covered Calls

With SBIO at 37.64, 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% 1.13 0.3
5% 1.88 0.5
10% 3.76 1.0

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 SBIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 39.00 0.30 39 0.8 0.60 (1.6%)
Oct 19 40.00 0.35 67 0.5 1.60 (4.3%)
5% Yield On SBIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 39.00 0.30 39 0.8 0.60 (1.6%)
Oct 19 40.00 0.35 67 0.5 1.60 (4.3%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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Want more examples? SBH Dividend | SBLK Dividend