GUSH Dividend Type Payments

Although GUSH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY S&P OIL GAS EXPLORATION PRODUCTS BUL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:50 PM ET):

DIREXION DAILY S&P OIL GAS EXPLORATION PRODUCTS BUL (GUSH)
Bid Ask Last Change Volume P/E Market Cap
33.88 33.93 33.92 +0.30 605K - 1.3B

GUSH Dividend-Like Income Using Covered Calls

With GUSH at 33.92, 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% 1.02 0.3
5% 1.70 0.5
10% 3.39 0.9

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 GUSH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 39.00 0.05 4 1.3 5.07 (14.9%)
Sep 21 52.00 0.15 39 0.4 18.07 (53.3%)
5% Yield On GUSH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 39.00 0.05 4 1.3 5.07 (14.9%)
Sep 21 50.00 0.20 39 0.5 16.07 (47.4%)
10% Yield On GUSH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 39.00 0.05 4 1.3 5.07 (14.9%)
Sep 21 45.00 0.45 39 1.2 11.07 (32.6%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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