XLRN Dividend Type Payments

ACCELERON PHARMA INC COMMON S dividend

Although XLRN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ACCELERON PHARMA INC COMMON S 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):

ACCELERON PHARMA INC COMMON S (XLRN)
Bid Ask Last Change Volume P/E Market Cap
48.39 49.00 48.39 +0.44 184K - 2.2B

XLRN Dividend-Like Income Using Covered Calls

With XLRN at 48.39, 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% 1.45 0.4
5% 2.42 0.7
10% 4.84 1.3

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 XLRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 55.00 0.25 36 0.7 6.00 (12.4%)
Nov 16 60.00 0.85 92 0.9 11.00 (22.7%)
5% Yield On XLRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 55.00 0.25 36 0.7 6.00 (12.4%)
Nov 16 60.00 0.85 92 0.9 11.00 (22.7%)
10% Yield On XLRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 50.00 1.40 36 3.9 1.00 (2.1%)
Nov 16 55.00 1.85 92 2.0 6.00 (12.4%)

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