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 Mon 4:16 PM ET):
| Direxion Daily S&P 500 Bull 2X Shares (SPUU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 130.78 |
131.05 |
131.03 |
-1.68 |
107K |
- |
0.1B |
SPUU Dividend-Like Income Using Covered Calls
With SPUU at 131.03, 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% |
3.93 |
1.1 |
| 5% |
6.55 |
1.8 |
| 10% |
13.10 |
3.6 |
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 |
| May 16 |
131.00 |
1.50 |
12 |
12.1 |
0.00 (0.0%) |
| Oct 17 |
131.00 |
11.30 |
166 |
6.8 |
0.00 (0.0%) |
| 5% Yield On SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
131.00 |
1.50 |
12 |
12.1 |
0.00 (0.0%) |
| Oct 17 |
131.00 |
11.30 |
166 |
6.8 |
0.00 (0.0%) |
| 10% Yield On SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
131.00 |
1.50 |
12 |
12.1 |
0.00 (0.0%) |
| Oct 17 |
131.00 |
11.30 |
166 |
6.8 |
0.00 (0.0%) |
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