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 Thu 11:05 AM ET):

Direxion Daily Sm-Cap BEA (TZA)
Bid Ask Last Change Volume P/E Market Cap
46.68 46.69 46.68 -0.17 870K - 0.0B

TZA Dividend-Like Income Using Covered Calls

With TZA at 46.68, 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% 1.40 0.4
5% 2.33 0.6
10% 4.67 1.3

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
Jul 26 53.00 0.12 9 1.3 6.31 (13.5%)
Aug 2 53.00 0.40 16 2.5 6.31 (13.5%)
5% Yield On TZA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 53.00 0.12 9 1.3 6.31 (13.5%)
Aug 2 53.00 0.40 16 2.5 6.31 (13.5%)
10% Yield On TZA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 53.00 0.12 9 1.3 6.31 (13.5%)
Aug 2 53.00 0.40 16 2.5 6.31 (13.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.OIH dividend   1.SKX dividend
2.SPX dividend 7.USO dividend   2.BFR dividend
3.EEM dividend 8.AAPL dividend   3.CRWD dividend
4.IWM dividend 9.FXI dividend   4.CLF dividend
5.QQQ dividend 10.VXX dividend   5.OSTK dividend

Want more examples? TYPE Dividend | TZOO Dividend