SPXL Dividend Type Payments
Although SPXL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 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 Mon 4:16 PM ET):
| Direxion Daily S&P 500 Bull 3X Shares (SPXL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 207.38 |
207.42 |
207.57 |
+8.97 |
2.5M |
- |
5.3B |
SPXL Dividend-Like Income Using Covered Calls
With SPXL at 207.57, 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% |
6.23 |
1.7 |
| 5% |
10.38 |
2.8 |
| 10% |
20.76 |
5.7 |
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 SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
207.50 |
8.00 |
26 |
30.8 |
0.08 (0.0%) |
| Nov 14 |
207.50 |
9.40 |
33 |
28.5 |
0.08 (0.0%) |
| 5% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
207.50 |
8.00 |
26 |
30.8 |
0.08 (0.0%) |
| Nov 14 |
207.50 |
9.40 |
33 |
28.5 |
0.08 (0.0%) |
| 10% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
207.50 |
8.00 |
26 |
30.8 |
0.08 (0.0%) |
| Nov 14 |
207.50 |
9.40 |
33 |
28.5 |
0.08 (0.0%) |
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