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 Thu 11:55 AM ET):
| Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 50.84 |
50.91 |
50.68 |
-1.66 |
14K |
- |
0.0B |
HIBL Dividend-Like Income Using Covered Calls
With HIBL at 50.68, 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% |
1.52 |
0.4 |
| 5% |
2.53 |
0.7 |
| 10% |
5.07 |
1.4 |
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 |
| Oct 17 |
51.00 |
2.80 |
65 |
4.3 |
0.09 (0.2%) |
| Sep 19 |
51.00 |
1.40 |
37 |
3.8 |
0.09 (0.2%) |
| 5% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
51.00 |
2.80 |
65 |
4.3 |
0.09 (0.2%) |
| Sep 19 |
51.00 |
1.40 |
37 |
3.8 |
0.09 (0.2%) |
| 10% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
51.00 |
2.80 |
65 |
4.3 |
0.09 (0.2%) |
| Sep 19 |
51.00 |
1.40 |
37 |
3.8 |
0.09 (0.2%) |
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