EDZ Dividend Type Payments

Direxion Emerging Markets Bear 3X Shares dividend

Although EDZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Emerging Markets Bear 3X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:35 AM ET):

Direxion Emerging Markets Bear 3X Shares (EDZ)
Bid Ask Last Change Volume P/E Market Cap
42.74 42.79 42.73 -0.98 4K - 0.0B

EDZ Dividend-Like Income Using Covered Calls

With EDZ at 42.73, 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% 1.28 0.4
5% 2.14 0.6
10% 4.27 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 EDZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 53.00 0.20 32 0.6 10.21 (23.9%)
Jul 19 85.00 0.70 124 0.6 42.21 (98.8%)
5% Yield On EDZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 53.00 0.20 32 0.6 10.21 (23.9%)
Jul 19 72.00 0.75 124 0.6 29.21 (68.4%)
10% Yield On EDZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 50.00 0.50 32 1.6 7.21 (16.9%)
Jul 19 60.00 1.55 124 1.3 17.21 (40.3%)

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