QQQE Dividend Type Payments
Although QQQE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion NASDAQ-100 Equal Weighted Index Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 95.95 |
97.80 |
96.83 |
-1.53 |
135K |
- |
0.5B |
QQQE Dividend-Like Income Using Covered Calls
With QQQE at 96.83, 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% |
2.90 |
0.8 |
| 5% |
4.84 |
1.3 |
| 10% |
9.68 |
2.7 |
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 QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
98.00 |
1.65 |
50 |
3.3 |
0.20 (0.2%) |
| Dec 19 |
100.00 |
3.10 |
141 |
2.2 |
2.20 (2.3%) |
| 5% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
98.00 |
1.65 |
50 |
3.3 |
0.20 (0.2%) |
| Dec 19 |
100.00 |
3.10 |
141 |
2.2 |
2.20 (2.3%) |
| 10% Yield On QQQE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
98.00 |
1.65 |
50 |
3.3 |
0.20 (0.2%) |
| Dec 19 |
98.00 |
3.90 |
141 |
2.8 |
0.20 (0.2%) |
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