MIDU Dividend Type Payments
Although MIDU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily MID-CAP Bull 3X to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Direxion Daily MID-CAP Bull 3X (MIDU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 33.23 |
34.43 |
33.91 |
-1.05 |
25K |
- |
0.0B |
MIDU Dividend-Like Income Using Covered Calls
With MIDU at 33.91, 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 MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 21 |
37.00 |
0.10 |
9 |
1.1 |
2.57 (7.6%) |
| Jan 18 |
40.00 |
0.20 |
37 |
0.5 |
5.57 (16.4%) |
| 5% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 21 |
37.00 |
0.10 |
9 |
1.1 |
2.57 (7.6%) |
| Jan 18 |
40.00 |
0.20 |
37 |
0.5 |
5.57 (16.4%) |
| 10% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 21 |
37.00 |
0.10 |
9 |
1.1 |
2.57 (7.6%) |
| Jan 18 |
39.00 |
0.35 |
37 |
0.9 |
4.57 (13.5%) |
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