VRNA Dividend Type Payments
Although VRNA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Verona Pharma plc - American Depositary Shares 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):
Verona Pharma plc - American Depositary Shares (VRNA) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
15.66 |
16.49 |
15.69 |
-0.06 |
504K |
- |
0.0B |
VRNA Dividend-Like Income Using Covered Calls
With VRNA at 15.69, here's a table showing how big the annual "dividend" (i.e. 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% |
0.47 |
0.1 |
5% |
0.78 |
0.2 |
10% |
1.57 |
0.4 |
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 VRNA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
17.50 |
0.05 |
15 |
0.3 |
1.01 (6.4%) |
Jul 19 |
17.50 |
2.45 |
78 |
3.1 |
1.01 (6.4%) |
5% Yield On VRNA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
17.50 |
0.05 |
15 |
0.3 |
1.01 (6.4%) |
Jul 19 |
17.50 |
2.45 |
78 |
3.1 |
1.01 (6.4%) |
10% Yield On VRNA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jul 19 |
17.50 |
2.45 |
78 |
3.1 |
1.01 (6.4%) |
Sep 20 |
17.50 |
1.30 |
141 |
0.9 |
1.01 (6.4%) |
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