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 Wed 4:16 PM ET):
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
104.50 |
115.00 |
109.32 |
-3.91 |
220K |
- |
0.0B |
NAIL Dividend-Like Income Using Covered Calls
With NAIL at 109.32, 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% |
3.28 |
0.9 |
5% |
5.47 |
1.5 |
10% |
10.93 |
3.0 |
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 |
May 17 |
115.00 |
6.00 |
24 |
25.0 |
0.00 (0.0%) |
Jun 21 |
115.00 |
10.40 |
59 |
17.6 |
0.00 (0.0%) |
5% Yield On NAIL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
115.00 |
6.00 |
24 |
25.0 |
0.00 (0.0%) |
Jun 21 |
115.00 |
10.40 |
59 |
17.6 |
0.00 (0.0%) |
10% Yield On NAIL Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
115.00 |
6.00 |
24 |
25.0 |
0.00 (0.0%) |
Jun 21 |
115.00 |
10.40 |
59 |
17.6 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial