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 Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 45.53 |
45.75 |
45.44 |
+0.58 |
360K |
- |
0.0B |
DFEN Dividend-Like Income Using Covered Calls
With DFEN at 45.44, 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% |
1.36 |
0.4 |
| 5% |
2.27 |
0.6 |
| 10% |
4.54 |
1.2 |
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 |
| Oct 17 |
50.00 |
4.10 |
123 |
3.3 |
4.25 (9.4%) |
| Jul 18 |
46.43 |
2.60 |
32 |
8.1 |
0.68 (1.5%) |
| 5% Yield On DFEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
50.00 |
4.10 |
123 |
3.3 |
4.25 (9.4%) |
| Jul 18 |
46.43 |
2.60 |
32 |
8.1 |
0.68 (1.5%) |
| 10% Yield On DFEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
50.00 |
4.10 |
123 |
3.3 |
4.25 (9.4%) |
| Jul 18 |
46.43 |
2.60 |
32 |
8.1 |
0.68 (1.5%) |
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