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 Fri 4:16 PM ET):
| Direxion Daily S&P 500 Bull 3X Shares (SPXL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 222.85 |
223.00 |
222.73 |
+3.49 |
1.2M |
- |
5.9B |
SPXL Dividend-Like Income Using Covered Calls
With SPXL at 222.73, 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% |
6.68 |
1.8 |
| 5% |
11.14 |
3.1 |
| 10% |
22.27 |
6.1 |
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 |
| Dec 5 |
222.50 |
3.70 |
8 |
40.0 |
0.00 (0.0%) |
| Dec 12 |
222.50 |
5.30 |
15 |
32.0 |
0.00 (0.0%) |
| 5% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
222.50 |
3.70 |
8 |
40.0 |
0.00 (0.0%) |
| Dec 12 |
222.50 |
5.30 |
15 |
32.0 |
0.00 (0.0%) |
| 10% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
222.50 |
3.70 |
8 |
40.0 |
0.00 (0.0%) |
| Dec 12 |
222.50 |
5.30 |
15 |
32.0 |
0.00 (0.0%) |
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