TNA Dividend Type Payments

DIREXION DAILY SM-CAP BULL dividend

Although TNA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY SM-CAP BULL 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 SM-CAP BULL (TNA)
Bid Ask Last Change Volume P/E Market Cap
65.86 66.05 65.98 -0.42 3.1M - 7.5B

TNA Dividend-Like Income Using Covered Calls

With TNA at 65.98, 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% 1.98 0.5
5% 3.30 0.9
10% 6.60 1.8

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 TNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 76.50 0.03 5 0.6 10.45 (15.8%)
Nov 2 80.00 0.08 12 0.7 13.95 (21.1%)
5% Yield On TNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 75.00 0.07 5 1.4 8.95 (13.6%)
Nov 2 77.50 0.17 12 1.4 11.45 (17.4%)
10% Yield On TNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 73.50 0.10 5 2.0 7.45 (11.3%)
Nov 2 76.00 0.23 12 1.9 9.95 (15.1%)

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