TZA Dividend Type Payments

Direxion Daily Sm-Cap BEA dividend

Although TZA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Sm-Cap BEA 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 BEA (TZA)
Bid Ask Last Change Volume P/E Market Cap
12.74 12.76 12.85 +0.11 20.3M - 0.0B

TZA Dividend-Like Income Using Covered Calls

With TZA at 12.85, 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% 0.39 0.1
5% 0.64 0.2
10% 1.29 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:

3% Yield On TZA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 16.50 0.01 5 0.2 3.74 (29.1%)
Dec 21 18.00 0.03 12 0.3 5.24 (40.8%)
5% Yield On TZA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 16.50 0.01 5 0.2 3.74 (29.1%)
Dec 21 18.00 0.03 12 0.3 5.24 (40.8%)
10% Yield On TZA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 15.50 0.03 5 0.6 2.74 (21.3%)
Dec 21 17.00 0.05 12 0.4 4.24 (33.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DXPE dividend 6.NXTM dividend   1. dividend
2.NVT dividend 7.MTOR dividend   2. dividend
3.MSEX dividend 8.WLTW dividend   3. dividend
4.WGP dividend 9.EDZ dividend   4. dividend
5.ECH dividend 10.ODFL dividend   5. dividend

Want more examples? TYPE Dividend | TZOO Dividend