HIBL Dividend Type Payments
Although HIBL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 High Beta 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 Daily S&P 500 High Beta Bull 3X Shares (HIBL) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
39.00 |
42.00 |
39.94 |
+1.08 |
125K |
- |
0.0B |
HIBL Dividend-Like Income Using Covered Calls
With HIBL at 39.94, 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% |
1.20 |
0.3 |
5% |
2.00 |
0.5 |
10% |
3.99 |
1.1 |
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 HIBL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
42.00 |
3.80 |
197 |
1.9 |
0.00 (0.0%) |
Aug 16 |
42.00 |
1.80 |
106 |
1.7 |
0.00 (0.0%) |
5% Yield On HIBL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
42.00 |
3.80 |
197 |
1.9 |
0.00 (0.0%) |
Aug 16 |
42.00 |
1.80 |
106 |
1.7 |
0.00 (0.0%) |
10% Yield On HIBL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
42.00 |
3.80 |
197 |
1.9 |
0.00 (0.0%) |
Aug 16 |
42.00 |
1.80 |
106 |
1.7 |
0.00 (0.0%) |
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