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 |
| 102.46 |
102.49 |
102.76 |
-7.88 |
7.6M |
- |
3.0B |
SPXL Dividend-Like Income Using Covered Calls
With SPXL at 102.76, 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% |
3.08 |
0.8 |
| 5% |
5.14 |
1.4 |
| 10% |
10.28 |
2.8 |
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 SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
102.00 |
7.10 |
12 |
55.1 |
0.00 (0.0%) |
| May 9 |
102.00 |
8.30 |
19 |
41.1 |
0.00 (0.0%) |
| 5% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
102.00 |
7.10 |
12 |
55.1 |
0.00 (0.0%) |
| May 9 |
102.00 |
8.30 |
19 |
41.1 |
0.00 (0.0%) |
| 10% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
102.00 |
7.10 |
12 |
55.1 |
0.00 (0.0%) |
| May 9 |
102.00 |
8.30 |
19 |
41.1 |
0.00 (0.0%) |
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