JDST Dividend Type Payments

Although JDST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY JR GOLD BEAR 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 JR GOLD BEAR (JDST)
Bid Ask Last Change Volume P/E Market Cap
81.35 82.11 81.98 -6.70 1.1M - 0.6B

JDST Dividend-Like Income Using Covered Calls

With JDST at 81.98, 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% 2.46 0.7
5% 4.10 1.1
10% 8.20 2.2

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 JDST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 127.00 0.10 8 1.3 44.89 (54.8%)
Aug 31 120.00 0.20 15 1.3 37.89 (46.2%)
5% Yield On JDST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 127.00 0.10 8 1.3 44.89 (54.8%)
Aug 31 120.00 0.20 15 1.3 37.89 (46.2%)
10% Yield On JDST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 110.00 0.25 8 3.1 27.89 (34.0%)
Aug 31 110.00 0.45 15 3.0 27.89 (34.0%)

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