DFEN Dividend Type Payments

Although DFEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY AEROSPACE & DEFENSE BULL 3X to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:10 PM ET):

DIREXION DAILY AEROSPACE & DEFENSE BULL 3X (DFEN)
Bid Ask Last Change Volume P/E Market Cap
50.43 50.59 50.53 -2.93 64K - 0.7B

DFEN Dividend-Like Income Using Covered Calls

With DFEN at 50.53, 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% 1.52 0.4
5% 2.53 0.7
10% 5.05 1.4

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 DFEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 59.00 0.15 30 0.5 8.41 (16.6%)
Jan 18 65.00 0.70 93 0.8 14.41 (28.5%)
5% Yield On DFEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 57.00 0.50 30 1.7 6.41 (12.7%)
Jan 18 65.00 0.70 93 0.8 14.41 (28.5%)
10% Yield On DFEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 57.00 0.50 30 1.7 6.41 (12.7%)
Jan 18 59.00 1.45 93 1.6 8.41 (16.6%)

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Want more examples? DFE Dividend | DFI Dividend