ZLAB Dividend Type Payments
Although ZLAB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zai Lab Limited - 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 Mon 4:16 PM ET):
| Zai Lab Limited - American Depositary Shares (ZLAB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 34.50 |
35.50 |
34.97 |
+0.23 |
838K |
- |
0.0B |
ZLAB Dividend-Like Income Using Covered Calls
With ZLAB at 34.97, 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% |
1.05 |
0.3 |
| 5% |
1.75 |
0.5 |
| 10% |
3.50 |
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 ZLAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
40.00 |
0.65 |
82 |
0.8 |
4.50 (12.9%) |
| Dec 19 |
40.00 |
1.50 |
173 |
0.9 |
4.50 (12.9%) |
| 5% Yield On ZLAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
40.00 |
0.65 |
82 |
0.8 |
4.50 (12.9%) |
| Dec 19 |
40.00 |
1.50 |
173 |
0.9 |
4.50 (12.9%) |
| 10% Yield On ZLAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
45.00 |
2.50 |
173 |
1.4 |
9.50 (27.2%) |
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