ERY Dividend Type Payments

DIREXION DAILY ENERGY BEAR 3X dividend

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

DIREXION DAILY ENERGY BEAR 3X (ERY)
Bid Ask Last Change Volume P/E Market Cap
36.69 36.80 36.75 -0.77 371K - 0.4B

ERY Dividend-Like Income Using Covered Calls

With ERY at 36.75, 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% 1.10 0.3
5% 1.84 0.5
10% 3.68 1.0

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 ERY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 50.00 0.10 33 0.3 13.20 (35.9%)
Oct 19 60.00 0.20 61 0.3 23.20 (63.1%)
5% Yield On ERY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 47.00 0.20 33 0.6 10.20 (27.8%)
Oct 19 54.00 0.35 61 0.6 17.20 (46.8%)
10% Yield On ERY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 44.00 0.40 33 1.2 7.20 (19.6%)
Oct 19 48.00 0.65 61 1.1 11.20 (30.5%)

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