HIBS Dividend Type Payments
Although HIBS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 High Beta Bear 3X Shares 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 S&P 500 High Beta Bear 3X Shares (HIBS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 4.94 |
5.04 |
5.00 |
+0.05 |
1.7M |
- |
0.0B |
HIBS Dividend-Like Income Using Covered Calls
With HIBS at 5.00, 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% |
0.15 |
0.0 |
| 5% |
0.25 |
0.1 |
| 10% |
0.50 |
0.1 |
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 HIBS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
13.00 |
0.10 |
152 |
0.1 |
7.96 (159.2%) |
| Jan 16 |
6.00 |
0.05 |
33 |
0.2 |
0.96 (19.2%) |
| 5% Yield On HIBS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
6.00 |
0.55 |
152 |
0.4 |
0.96 (19.2%) |
| Jan 16 |
6.00 |
0.05 |
33 |
0.2 |
0.96 (19.2%) |
| 10% Yield On HIBS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
6.00 |
0.55 |
152 |
0.4 |
0.96 (19.2%) |
| Jan 16 |
6.00 |
0.05 |
33 |
0.2 |
0.96 (19.2%) |
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