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 Wed 12:50 PM ET):
| DIREXION DAILY MID-CAP BULL 3X (MIDU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 50.49 |
50.55 |
50.57 |
-1.33 |
22K |
- |
0.7B |
MIDU Dividend-Like Income Using Covered Calls
With MIDU at 50.57, 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% |
1.52 |
0.4 |
| 5% |
2.53 |
0.7 |
| 10% |
5.06 |
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 MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 17 |
51.00 |
0.05 |
3 |
1.7 |
0.45 (0.9%) |
| Sep 21 |
54.00 |
0.35 |
38 |
0.9 |
3.45 (6.8%) |
| 5% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 17 |
51.00 |
0.05 |
3 |
1.7 |
0.45 (0.9%) |
| Sep 21 |
54.00 |
0.35 |
38 |
0.9 |
3.45 (6.8%) |
| 10% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 17 |
51.00 |
0.05 |
3 |
1.7 |
0.45 (0.9%) |
| Sep 21 |
52.00 |
0.55 |
38 |
1.4 |
1.45 (2.9%) |
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