Aurinia Pharmaceuticals Inc (AUPH)

[nsomniyak]

Schwab offered me 7.5% on my AUPH shares, via their Securities Fully Paid Lending Program. They have paid up to 50% on other securities in the past. Those are annual rates but the interest is accrued daily and paid out monthly.

Mechanically, I can still sell the shares any time I want with no restriction. The interest rate fluctuates week to week. The only think I can't do is write covered calls against the shares while on loan. I like the program and have made good money loaning out shares I plan on holding for the long term (I understand that they will be loaned to shorts and don't care). Getting in and out is easy - can be done in seconds day by day via their website.

I have loaned Schwab 5-6 different securities under this program and think it is a great way for long term investors to get some "income" off those shares while waiting. AUPH is the perfect type of stock to do this with.

I do not have my AUPH shares currently on loan as I wrote some covered calls against them (earning well more than 7%).