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 Weighted Index Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 9:55 AM ET):
| Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 90.74 |
90.82 |
90.75 |
-0.32 |
14K |
- |
0.5B |
QQQE Dividend-Like Income Using Covered Calls
With QQQE at 90.75, 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% |
2.72 |
0.7 |
| 5% |
4.54 |
1.2 |
| 10% |
9.08 |
2.5 |
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 QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
91.00 |
1.45 |
25 |
5.8 |
0.18 (0.2%) |
| Dec 20 |
91.00 |
2.10 |
60 |
3.5 |
0.18 (0.2%) |
| 5% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
91.00 |
1.45 |
25 |
5.8 |
0.18 (0.2%) |
| Dec 20 |
91.00 |
2.10 |
60 |
3.5 |
0.18 (0.2%) |
| 10% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
91.00 |
1.45 |
25 |
5.8 |
0.18 (0.2%) |
| Dec 20 |
91.00 |
2.10 |
60 |
3.5 |
0.18 (0.2%) |
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