YINN Dividend Type Payments

Although YINN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY FTSE CHINA BULL 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 FTSE CHINA BULL (YINN)
Bid Ask Last Change Volume P/E Market Cap
22.20 22.30 22.27 +0.77 2.9M - 2.8B

YINN Dividend-Like Income Using Covered Calls

With YINN at 22.27, 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% 0.67 0.2
5% 1.11 0.3
10% 2.23 0.6

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 YINN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 0.10 36 0.3 7.70 (34.6%)
Oct 19 34.00 0.15 64 0.2 11.70 (52.5%)
5% Yield On YINN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 29.00 0.20 36 0.6 6.70 (30.1%)
Oct 19 33.00 0.20 64 0.3 10.70 (48.0%)
10% Yield On YINN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 28.00 0.25 36 0.7 5.70 (25.6%)
Oct 19 30.00 0.40 64 0.6 7.70 (34.6%)

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