HIBL Dividend Type Payments
Although HIBL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 High Beta Bull 3X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 63.27 |
66.41 |
66.26 |
+3.56 |
73K |
- |
0.0B |
HIBL Dividend-Like Income Using Covered Calls
With HIBL at 66.26, here's a table showing how big the annual "dividend" (i.e. 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% |
1.99 |
0.5 |
| 5% |
3.31 |
0.9 |
| 10% |
6.63 |
1.8 |
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 HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
67.00 |
8.20 |
164 |
5.0 |
0.59 (0.9%) |
| Feb 20 |
70.00 |
5.60 |
80 |
7.0 |
3.59 (5.4%) |
| 5% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
67.00 |
8.20 |
164 |
5.0 |
0.59 (0.9%) |
| Feb 20 |
70.00 |
5.60 |
80 |
7.0 |
3.59 (5.4%) |
| 10% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
67.00 |
8.20 |
164 |
5.0 |
0.59 (0.9%) |
| Feb 20 |
70.00 |
5.60 |
80 |
7.0 |
3.59 (5.4%) |
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