TYO Dividend Type Payments

Although TYO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY 7-10-YEAR TREASURY BE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

DIREXION DAILY 7-10-YEAR TREASURY BE (TYO)
Bid Ask Last Change Volume P/E Market Cap
15.65 16.14 15.65 +0.06 1K - 0.2B

TYO Dividend-Like Income Using Covered Calls

With TYO at 15.65, 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% 0.47 0.1
5% 0.78 0.2
10% 1.57 0.4

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:

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.NBEV dividend
2.SPX dividend 7.MU dividend   2.CRON dividend
3.EEM dividend 8.FXI dividend   3.ARWR dividend
4.QQQ dividend 9.AMD dividend   4.TLRY dividend
5.PBR dividend 10.XLF dividend   5.IBM dividend

Want more examples? TYNS Dividend | TYPE Dividend