SPDN Dividend Type Payments
Although SPDN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 Bear 1X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
Direxion Daily S&P 500 Bear 1X Shares (SPDN) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
12.65 | 12.66 | 12.67 | -0.15 | 5.6M | - | 0.1B |
SPDN Dividend-Like Income Using Covered Calls
With SPDN at 12.67, 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% | 0.38 | 0.1 |
5% | 0.63 | 0.2 |
10% | 1.27 | 0.3 |
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 SPDN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 13.00 | 0.05 | 25 | 0.2 | 0.34 (2.7%) | |
Jun 21 | 13.00 | 0.15 | 60 | 0.3 | 0.34 (2.7%) |
5% Yield On SPDN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 13.00 | 0.05 | 25 | 0.2 | 0.34 (2.7%) | |
Jun 21 | 13.00 | 0.15 | 60 | 0.3 | 0.34 (2.7%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | CIFR dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | ENPH dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | SNAP dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | CGC dividend |
Want more examples? SPD Dividend | SPDV Dividend