SPXS Dividend Type Payments

Although SPXS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY S&P 500 BEAR 3X 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 BEAR 3X (SPXS)
Bid Ask Last Change Volume P/E Market Cap
23.05 23.08 23.13 -0.57 2.8M - 2.9B

SPXS Dividend-Like Income Using Covered Calls

With SPXS at 23.13, 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% 0.69 0.2
5% 1.16 0.3
10% 2.31 0.6

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 SPXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 32.00 0.10 37 0.3 8.92 (38.6%)
Oct 19 35.00 0.20 65 0.3 11.92 (51.5%)
5% Yield On SPXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 29.00 0.15 37 0.4 5.92 (25.6%)
Oct 19 32.00 0.25 65 0.4 8.92 (38.6%)
10% Yield On SPXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 27.00 0.25 37 0.7 3.92 (16.9%)
Oct 19 28.00 0.45 65 0.7 4.92 (21.3%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? SPXPV Dividend | SPXT Dividend