SPUU Dividend Type Payments
Although SPUU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 Bull 2X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:40 PM ET):
| Direxion Daily S&P 500 Bull 2X Shares (SPUU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 145.48 |
145.60 |
145.71 |
-0.21 |
30K |
- |
0.1B |
SPUU Dividend-Like Income Using Covered Calls
With SPUU at 145.71, 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% |
4.37 |
1.2 |
| 5% |
7.29 |
2.0 |
| 10% |
14.57 |
4.0 |
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 SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
145.00 |
6.00 |
57 |
9.5 |
0.00 (0.0%) |
| Oct 17 |
145.00 |
10.30 |
120 |
8.1 |
0.00 (0.0%) |
| 5% Yield On SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
145.00 |
6.00 |
57 |
9.5 |
0.00 (0.0%) |
| Oct 17 |
145.00 |
10.30 |
120 |
8.1 |
0.00 (0.0%) |
| 10% Yield On SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
145.00 |
6.00 |
57 |
9.5 |
0.00 (0.0%) |
| Oct 17 |
145.00 |
10.30 |
120 |
8.1 |
0.00 (0.0%) |
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