NAIL Dividend Type Payments

Although NAIL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Homebuilders & Supplies 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 Homebuilders & Supplies Bull 3X Shares (NAIL)
Bid Ask Last Change Volume P/E Market Cap
48.90 49.50 49.45 -4.47 829K - 0.0B

NAIL Dividend-Like Income Using Covered Calls

With NAIL at 49.45, 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% 1.48 0.4
5% 2.47 0.7
10% 4.95 1.4

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 NAIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 50.00 6.20 59 10.5 0.50 (1.0%)
Sep 19 100.00 0.60 122 0.5 50.50 (102.1%)
5% Yield On NAIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 50.00 6.20 59 10.5 0.50 (1.0%)
Sep 19 50.00 9.10 122 7.5 0.50 (1.0%)
10% Yield On NAIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 50.00 6.20 59 10.5 0.50 (1.0%)
Sep 19 50.00 9.10 122 7.5 0.50 (1.0%)

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