DPK Dividend Type Payments

DIREXION DAILY DEVELOPMENT MARKETS BEAR 3 dividend

Although DPK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY DEVELOPMENT MARKETS BEAR 3 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

DIREXION DAILY DEVELOPMENT MARKETS BEAR 3 (DPK)
Bid Ask Last Change Volume P/E Market Cap
13.54 13.64 13.65 -0.25 8K - 0.1B

DPK Dividend-Like Income Using Covered Calls

With DPK at 13.65, 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% 0.41 0.1
5% 0.68 0.2
10% 1.37 0.4

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 DPK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 15.00 0.40 65 0.6 1.36 (10.0%)
Jan 18 15.00 0.80 156 0.5 1.36 (10.0%)
5% Yield On DPK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 15.00 0.40 65 0.6 1.36 (10.0%)
Jan 18 15.00 0.80 156 0.5 1.36 (10.0%)
10% Yield On DPK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 15.00 0.40 65 0.6 1.36 (10.0%)
Jan 18 15.00 0.80 156 0.5 1.36 (10.0%)

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