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 Mon 4:16 PM ET):
| Direxion NASDAQ-100 Equal WTD (QQQE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 42.61 |
43.00 |
42.77 |
+0.31 |
217K |
- |
0.0B |
QQQE Dividend-Like Income Using Covered Calls
With QQQE at 42.77, 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% |
1.28 |
0.4 |
| 5% |
2.14 |
0.6 |
| 10% |
4.28 |
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 |
| Jan 18 |
43.00 |
0.35 |
40 |
0.9 |
0.00 (0.0%) |
| Feb 15 |
43.00 |
0.70 |
68 |
1.0 |
0.00 (0.0%) |
| 5% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 18 |
43.00 |
0.35 |
40 |
0.9 |
0.00 (0.0%) |
| Feb 15 |
43.00 |
0.70 |
68 |
1.0 |
0.00 (0.0%) |
| 10% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 15 |
43.00 |
1.55 |
96 |
1.6 |
0.00 (0.0%) |
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