Direxion Daily 10-Yr Treasury Bull 3x Shrs (TYD) Covered Calls

Direxion Daily 7-10 Year Treasury Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. The fund is a high-leverage tactical tool for investors looking to capitalize on rising prices (falling yields) in the intermediate-term U.S. Treasury market.

You can sell covered calls on Direxion Daily 10-Yr Treasury Bull 3x Shrs to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for TYD (prices last updated Wed 10:15 AM ET):

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Core Business and Products

Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD) is a leveraged exchange-traded fund designed to provide triple the daily performance (+300%) of the ICE U.S. Treasury 7-10 Year Bond Index. As of April 2026, the fund manages approximately $38 million in assets. It primarily utilizes swap agreements with major financial institutions and investments in U.S. Treasury securities to achieve its geared objective. Because it rebalances daily, TYD is a sophisticated trading vehicle intended for short-term macroeconomic bets rather than long-term buy-and-hold investing.

The fund focuses on the intermediate-term segment of the yield curve. For every 1% increase in the value of 7-10 year Treasuries (which occurs when interest rates fall), TYD seeks to increase by approximately 3%. Conversely, if interest rates rise, the fund’s leverage significantly amplifies losses. In early 2026, the underlying index maintains a modified duration of approximately 7.04 years, giving TYD a high level of theoretical sensitivity to Federal Reserve policy shifts.

Competitive Landscape

TYD occupies a niche between short-term Treasury funds and long-bond powerhouses like TMF. It is fully optionable, though liquidity in its options chain is typically lower than that of its long-bond counterparts. With a net expense ratio of 1.07%, it is priced as a high-octane trading instrument. It competes with other leveraged Treasury products and the much larger unleveraged benchmarks.

Key peers and related leveraged/fixed-income vehicles include:

1. ProShares Ultra 7-10 Year Treasury: A 2x leveraged sibling providing double the daily performance of the same intermediate maturity range.
2. Direxion Daily 20+ Year Treasury Bull 3X Shares: The 3x leveraged peer for the "long bond" segment, which typically exhibits higher volatility than TYD.
3. iShares 7-10 Year Treasury Bond ETF: The 1x long benchmark that TYD seeks to triple.
4. Direxion Daily 7-10 Year Treasury Bear 3X Shares: The direct "inverse mirror" fund providing 3x negative daily leverage to the same index.
5. ProShares Ultra 20+ Year Treasury: A 2x leveraged long-bond peer.

Strategic Outlook and Innovation

In 2026, TYD is a popular choice for traders playing the "mid-curve" rally. As the market anticipates shifts in the Federal Funds Rate, the 7-10 year segment often reacts more sharply than shorter-dated bills. Despite its leveraged structure, the fund pays quarterly dividends derived from its Treasury holdings and cash collateral; the most recent distribution on March 26, 2026, was $0.25 per share, resulting in a forward dividend yield of approximately 4.03%.

Innovation at Direxion focuses on maintaining high correlation to the ICE benchmark while managing the "decay" inherent in daily reset products. As of April 2026, the fund is frequently used by institutional hedgers to quickly adjust the duration of a larger fixed-income portfolio. For the sophisticated 2026 investor, TYD remains a premier tool for magnifying exposure to the core of the U.S. Treasury curve.

Want more examples? TXT Covered Calls | TYL Covered Calls