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 |
| 50.87 |
54.00 |
53.20 |
+0.90 |
328K |
- |
0.0B |
NAIL Dividend-Like Income Using Covered Calls
With NAIL at 53.20, 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% |
1.60 |
0.4 |
| 5% |
2.66 |
0.7 |
| 10% |
5.32 |
1.5 |
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 |
| May 16 |
54.00 |
3.20 |
17 |
18.8 |
0.00 (0.0%) |
| Sep 19 |
100.00 |
1.30 |
143 |
0.9 |
46.00 (86.5%) |
| 5% Yield On NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
54.00 |
3.20 |
17 |
18.8 |
0.00 (0.0%) |
| Sep 19 |
100.00 |
1.30 |
143 |
0.9 |
46.00 (86.5%) |
| 10% Yield On NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
54.00 |
3.20 |
17 |
18.8 |
0.00 (0.0%) |
| Sep 19 |
54.00 |
10.10 |
143 |
7.1 |
0.00 (0.0%) |
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