MIDZ Dividend Type Payments

Although MIDZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily MID-CAP Bear 3X to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:55 AM ET):

Direxion Daily MID-CAP Bear 3X (MIDZ)
Bid Ask Last Change Volume P/E Market Cap
16.47 16.59 16.43 +0.54 7K - 0.0B

MIDZ Dividend-Like Income Using Covered Calls

With MIDZ at 16.43, 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% 0.49 0.1
5% 0.82 0.2
10% 1.64 0.5

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 MIDZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 22.00 0.05 33 0.2 5.41 (32.9%)
Feb 15 24.00 0.10 61 0.2 7.41 (45.1%)
5% Yield On MIDZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 19.00 0.25 33 0.8 2.41 (14.7%)
Feb 15 23.00 0.20 61 0.3 6.41 (39.0%)
10% Yield On MIDZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 19.00 0.25 33 0.8 2.41 (14.7%)
Feb 15 21.00 0.30 61 0.5 4.41 (26.8%)

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Want more examples? MIDU Dividend | MIK Dividend