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 Tue 12:20 PM ET):
| Direxion Daily S&P 500 Bear 3X (SPXS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 34.92 |
34.93 |
34.94 |
-0.06 |
1.8M |
- |
0.1B |
SPXS Dividend-Like Income Using Covered Calls
With SPXS at 34.94, 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% |
1.05 |
0.3 |
| 5% |
1.75 |
0.5 |
| 10% |
3.49 |
1.0 |
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 SPXS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
35.00 |
0.25 |
39 |
0.6 |
0.07 (0.2%) |
| Nov 7 |
35.00 |
0.86 |
11 |
7.8 |
0.07 (0.2%) |
| 5% Yield On SPXS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
35.00 |
0.25 |
39 |
0.6 |
0.07 (0.2%) |
| Nov 7 |
35.00 |
0.86 |
11 |
7.8 |
0.07 (0.2%) |
| 10% Yield On SPXS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
35.00 |
0.86 |
11 |
7.8 |
0.07 (0.2%) |
| Nov 14 |
35.00 |
1.00 |
18 |
5.6 |
0.07 (0.2%) |
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