FAS Dividend Type Payments
Although FAS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Financial 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 Fri 4:16 PM ET):
| Direxion Financial Bull 3X Shares (FAS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 150.14 | 150.40 | 149.62 | +1.09 | 563K | - | 0.2B |
FAS Dividend-Like Income Using Covered Calls
With FAS at 149.62, 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% | 4.49 | 1.2 |
| 5% | 7.48 | 2.0 |
| 10% | 14.96 | 4.1 |
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 FAS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 3 | 150.00 | 5.00 | 14 | 32.9 | 0.00 (0.0%) | |
| Jul 11 | 150.00 | 6.50 | 22 | 27.7 | 0.00 (0.0%) | |
| 5% Yield On FAS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 3 | 150.00 | 5.00 | 14 | 32.9 | 0.00 (0.0%) | |
| Jul 11 | 150.00 | 6.50 | 22 | 27.7 | 0.00 (0.0%) | |
| 10% Yield On FAS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 3 | 150.00 | 5.00 | 14 | 32.9 | 0.00 (0.0%) | |
| Jul 11 | 150.00 | 6.50 | 22 | 27.7 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | NVDA dividend | 7. | IWM dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | FXI dividend | 3. | BBAI dividend | |
| 4. | GLD dividend | 9. | AAPL dividend | 4. | RUN dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | CELC dividend | |
Want more examples? FARO Dividend | FAST Dividend
