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 1:20 PM ET):
| DIREXION DAILY MID-CAP BULL 3X (MIDU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 42.84 |
42.90 |
43.05 |
-1.56 |
14K |
- |
0.7B |
MIDU Dividend-Like Income Using Covered Calls
With MIDU at 43.05, 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% |
1.29 |
0.4 |
| 5% |
2.15 |
0.6 |
| 10% |
4.31 |
1.2 |
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 MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 16 |
48.00 |
0.25 |
30 |
0.8 |
5.10 (11.8%) |
| Dec 21 |
51.00 |
0.30 |
65 |
0.5 |
8.10 (18.8%) |
| 5% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 16 |
48.00 |
0.25 |
30 |
0.8 |
5.10 (11.8%) |
| Dec 21 |
50.00 |
0.60 |
65 |
0.9 |
7.10 (16.5%) |
| 10% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 16 |
47.00 |
0.50 |
30 |
1.7 |
4.10 (9.5%) |
| Dec 21 |
44.00 |
2.85 |
65 |
4.4 |
1.10 (2.6%) |
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