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 Wed 4:16 PM ET):
| Direxion Daily S&P 500 Bull 3X Shares (SPXL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 160.47 |
160.51 |
160.33 |
-1.34 |
3.1M |
- |
4.3B |
SPXL Dividend-Like Income Using Covered Calls
With SPXL at 160.33, 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% |
4.81 |
1.3 |
| 5% |
8.02 |
2.2 |
| 10% |
16.03 |
4.4 |
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 |
| Jul 3 |
160.00 |
6.20 |
23 |
24.7 |
0.00 (0.0%) |
| Jul 11 |
160.00 |
7.20 |
31 |
21.6 |
0.00 (0.0%) |
| 5% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
160.00 |
6.20 |
23 |
24.7 |
0.00 (0.0%) |
| Jul 11 |
160.00 |
7.20 |
31 |
21.6 |
0.00 (0.0%) |
| 10% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
160.00 |
6.20 |
23 |
24.7 |
0.00 (0.0%) |
| Jul 11 |
160.00 |
7.20 |
31 |
21.6 |
0.00 (0.0%) |
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