Direxion Daily 10-Yr Treasury Bear 3x Shrs (TYO) Covered Calls

Direxion Daily 7-10 Year Treasury Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse 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 profit from rising interest rates (falling bond prices) in the intermediate-term U.S. Treasury market.

You can sell covered calls on Direxion Daily 10-Yr Treasury Bear 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 TYO (prices last updated Tue 4:16 PM ET):

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Core Business and Products

Direxion Daily 7-10 Year Treasury Bear 3X Shares (TYO) is a geared inverse ETF designed to provide three times the opposite daily return (-300%) of the ICE U.S. Treasury 7-10 Year Bond Index. As of April 2026, the fund manages approximately $14 million in assets. It achieves its triple-inverse leverage through swap agreements and other derivative instruments. Due to its daily reset mechanism, TYO is intended for short-term tactical positioning; holding it for extended periods can lead to significant performance drift caused by compounding and volatility decay.

The fund targets the intermediate-term segment of the U.S. sovereign curve. If 7-10 year Treasury prices fall by 1% (typically due to a rise in intermediate interest rates), TYO is designed to gain approximately 3%. This makes it a popular vehicle for traders speculating on a "hawkish" Federal Reserve or rising inflation expectations. The underlying index currently carries a duration of approximately 7.11 years, providing a substantial base for the fund’s magnified volatility.

Competitive Landscape

TYO is a primary high-leverage tool for betting against intermediate Treasuries. It is fully optionable, allowing sophisticated traders to utilize it for tail-risk hedging or directional volatility plays. With a net expense ratio of 1.00% (reflecting contractual fee waivers), it is priced as a professional trading instrument. It competes with other bearish Treasury products and the broader inverse-fixed-income market.

Key peers and related inverse/leveraged vehicles include:

1. Direxion Daily 7-10 Year Treasury Bull 3X Shares: The direct 3x bullish mirror fund for the same index.
2. Direxion Daily 20+ Year Treasury Bear 3X Shares: The 3x inverse peer for the "long bond" segment, which typically offers even higher volatility than TYO.
3. iShares 7-10 Year Treasury Bond ETF: The 1x long benchmark that TYO seeks to triple-inverse.
4. ProShares UltraShort 7-10 Year Treasury: A 2x leveraged inverse sibling offering a slightly lower leverage profile.
5. ProShares Short 20+ Year Treasury: An inverse peer for those seeking to short the long-dated portion of the Treasury curve.

Strategic Outlook and Innovation

In 2026, TYO is frequently used by traders to play "bear steepener" or "bull flattener" trades on the yield curve. As global markets react to shifting terminal rate expectations, TYO provides a capital-efficient way to hedge fixed-income portfolios against rising yields. Despite its inverse nature, the fund occasionally pays small distributions from interest earned on its cash collateral; the most recent quarterly dividend was $0.1381 per share in March 2026.

Innovation at Direxion focuses on maintaining precise daily tracking while navigating the costs of rebalancing in a fluctuating rate environment. As of April 2026, TYO maintains high intraday liquidity, serving as a vital instrument for those seeking to profit from the "higher-for-longer" narrative in the U.S. debt market. For the 2026 trader, TYO remains the standard for aggressive intermediate-term rate participation.

Want more examples? TYL Covered Calls | TYRA Covered Calls