SOXL Dividend Type Payments

Although SOXL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY SEMICONDUCTOR BULL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:40 AM ET):

DIREXION DAILY SEMICONDUCTOR BULL (SOXL)
Bid Ask Last Change Volume P/E Market Cap
122.68 122.83 122.99 -2.58 312K - 6.9B

SOXL Dividend-Like Income Using Covered Calls

With SOXL at 122.99, 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% 3.69 1.0
5% 6.15 1.7
10% 12.30 3.4

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 SOXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 141.00 0.05 3 1.7 18.17 (14.8%)
Nov 16 177.00 0.35 31 1.1 54.17 (44.0%)
5% Yield On SOXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 138.00 0.15 3 5.0 15.17 (12.3%)
Nov 16 169.00 0.55 31 1.8 46.17 (37.5%)
10% Yield On SOXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 138.00 0.15 3 5.0 15.17 (12.3%)
Nov 16 159.00 1.10 31 3.5 36.17 (29.4%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.GBT dividend
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3.QQQ dividend 8.FXI dividend   3.CLVS dividend
4.EEM dividend 9.IWM dividend   4.CRON dividend
5.BAC dividend 10.AMD dividend   5.UVXY dividend

Want more examples? SOX Dividend | SOXS Dividend