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 Fri 4:16 PM ET):
| Direxion Daily S&P 500 Bear 3X (SPXS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 34.26 |
34.27 |
34.21 |
+0.35 |
14.1M |
- |
0.1B |
SPXS Dividend-Like Income Using Covered Calls
With SPXS at 34.21, 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% |
1.03 |
0.3 |
| 5% |
1.71 |
0.5 |
| 10% |
3.42 |
0.9 |
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 |
| Feb 6 |
34.50 |
0.61 |
8 |
7.6 |
0.23 (0.7%) |
| Mar 6 |
34.50 |
1.26 |
36 |
3.5 |
0.23 (0.7%) |
| 5% Yield On SPXS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
34.50 |
0.61 |
8 |
7.6 |
0.23 (0.7%) |
| Mar 6 |
34.50 |
1.26 |
36 |
3.5 |
0.23 (0.7%) |
| 10% Yield On SPXS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
34.50 |
0.61 |
8 |
7.6 |
0.23 (0.7%) |
| Mar 6 |
34.50 |
1.26 |
36 |
3.5 |
0.23 (0.7%) |
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