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 Thu 4:16 PM ET):
Direxion Daily S&P 500 Bull 2X Shares (SPUU) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
123.35 |
123.47 |
123.30 |
+0.09 |
8K |
- |
0.1B |
SPUU Dividend-Like Income Using Covered Calls
With SPUU at 123.30, 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% |
3.70 |
1.0 |
5% |
6.17 |
1.7 |
10% |
12.33 |
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 SPUU Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
123.00 |
1.70 |
23 |
5.3 |
0.00 (0.0%) |
May 17 |
123.00 |
3.40 |
51 |
5.7 |
0.00 (0.0%) |
5% Yield On SPUU Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
123.00 |
1.70 |
23 |
5.3 |
0.00 (0.0%) |
May 17 |
123.00 |
3.40 |
51 |
5.7 |
0.00 (0.0%) |
10% Yield On SPUU Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
123.00 |
1.70 |
23 |
5.3 |
0.00 (0.0%) |
May 17 |
123.00 |
3.40 |
51 |
5.7 |
0.00 (0.0%) |
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