LABU Dividend Type Payments
Although LABU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P Biotech 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 Biotech Bull 3X Shares (LABU) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
125.51 |
125.87 |
125.54 |
+0.29 |
708K |
- |
0.2B |
LABU Dividend-Like Income Using Covered Calls
With LABU at 125.54, 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% |
3.77 |
1.0 |
5% |
6.28 |
1.7 |
10% |
12.55 |
3.4 |
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 LABU Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
125.50 |
9.50 |
31 |
29.5 |
0.00 (0.0%) |
Oct 4 |
126.00 |
2.89 |
3 |
96.3 |
0.13 (0.1%) |
5% Yield On LABU Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
125.50 |
9.50 |
31 |
29.5 |
0.00 (0.0%) |
Oct 4 |
126.00 |
2.89 |
3 |
96.3 |
0.13 (0.1%) |
10% Yield On LABU Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
125.50 |
9.50 |
31 |
29.5 |
0.00 (0.0%) |
Oct 4 |
126.00 |
2.89 |
3 |
96.3 |
0.13 (0.1%) |
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