QQQE Dividend Type Payments
Although QQQE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION NASDAQ-100 EQUAL WTD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| DIREXION NASDAQ-100 EQUAL WTD (QQQE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 43.68 |
44.15 |
43.99 |
-0.22 |
11K |
- |
1.6B |
QQQE Dividend-Like Income Using Covered Calls
With QQQE at 43.99, 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% |
1.32 |
0.4 |
| 5% |
2.20 |
0.6 |
| 10% |
4.40 |
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 QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 16 |
44.00 |
0.50 |
29 |
1.2 |
0.00 (0.0%) |
| Dec 21 |
45.00 |
0.35 |
64 |
0.5 |
0.85 (1.9%) |
| 5% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 16 |
44.00 |
0.50 |
29 |
1.2 |
0.00 (0.0%) |
| Dec 21 |
44.00 |
0.95 |
64 |
1.3 |
0.00 (0.0%) |
| 10% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 16 |
44.00 |
0.50 |
29 |
1.2 |
0.00 (0.0%) |
| Dec 21 |
44.00 |
0.95 |
64 |
1.3 |
0.00 (0.0%) |
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