NAIL Dividend Type Payments
Although NAIL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Homebuilders & Supplies Bull 3X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 74.49 |
74.69 |
74.69 |
+6.13 |
1.6M |
- |
0.0B |
NAIL Dividend-Like Income Using Covered Calls
With NAIL at 74.69, here's a table showing how big the annual "dividend" (i.e. 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% |
2.24 |
0.6 |
| 5% |
3.73 |
1.0 |
| 10% |
7.47 |
2.0 |
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 NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
2.20 |
4 |
55.0 |
0.31 (0.4%) |
| Sep 19 |
100.00 |
0.30 |
39 |
0.8 |
25.31 (33.9%) |
| 5% Yield On NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
2.20 |
4 |
55.0 |
0.31 (0.4%) |
| Sep 19 |
75.00 |
7.50 |
39 |
19.2 |
0.31 (0.4%) |
| 10% Yield On NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
2.20 |
4 |
55.0 |
0.31 (0.4%) |
| Sep 19 |
75.00 |
7.50 |
39 |
19.2 |
0.31 (0.4%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
