SPUU Dividend Type Payments
Although SPUU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 Bull 2X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 3:35 PM ET):
| Direxion Daily S&P 500 Bull 2X Shares (SPUU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 175.02 |
175.20 |
175.22 |
-3.36 |
18K |
- |
0.1B |
SPUU Dividend-Like Income Using Covered Calls
With SPUU at 175.22, 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% |
5.26 |
1.4 |
| 5% |
8.76 |
2.4 |
| 10% |
17.52 |
4.8 |
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 SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
175.00 |
9.40 |
65 |
14.2 |
0.00 (0.0%) |
| Nov 21 |
175.00 |
7.20 |
37 |
18.9 |
0.00 (0.0%) |
| 5% Yield On SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
175.00 |
9.40 |
65 |
14.2 |
0.00 (0.0%) |
| Nov 21 |
175.00 |
7.20 |
37 |
18.9 |
0.00 (0.0%) |
| 10% Yield On SPUU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
175.00 |
9.40 |
65 |
14.2 |
0.00 (0.0%) |
| Nov 21 |
175.00 |
7.20 |
37 |
18.9 |
0.00 (0.0%) |
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