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 |
| 41.35 |
43.65 |
42.58 |
-0.46 |
16K |
- |
0.0B |
MIDU Dividend-Like Income Using Covered Calls
With MIDU at 42.58, 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% |
1.28 |
0.3 |
| 5% |
2.13 |
0.6 |
| 10% |
4.26 |
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 |
| Mar 15 |
44.00 |
0.25 |
23 |
1.1 |
0.35 (0.8%) |
| Apr 18 |
47.00 |
0.30 |
57 |
0.5 |
3.35 (7.9%) |
| 5% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 15 |
44.00 |
0.25 |
23 |
1.1 |
0.35 (0.8%) |
| Apr 18 |
46.00 |
0.50 |
57 |
0.9 |
2.35 (5.5%) |
| 10% Yield On MIDU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 18 |
45.00 |
0.70 |
57 |
1.2 |
1.35 (3.2%) |
| Jul 19 |
44.00 |
2.40 |
149 |
1.6 |
0.35 (0.8%) |
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