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 Tue 4:16 PM ET):
| Direxion Daily S&P 500 Bull 3X Shares (SPXL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 217.44 |
217.54 |
217.56 |
-7.91 |
3.2M |
- |
6.1B |
SPXL Dividend-Like Income Using Covered Calls
With SPXL at 217.56, 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% |
6.53 |
1.8 |
| 5% |
10.88 |
3.0 |
| 10% |
21.76 |
6.0 |
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 |
217.50 |
10.00 |
32 |
31.1 |
0.00 (0.0%) |
| Nov 7 |
217.50 |
3.60 |
4 |
89.0 |
0.00 (0.0%) |
| 5% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
217.50 |
10.00 |
32 |
31.1 |
0.00 (0.0%) |
| Nov 7 |
217.50 |
3.60 |
4 |
89.0 |
0.00 (0.0%) |
| 10% Yield On SPXL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
217.50 |
10.00 |
32 |
31.1 |
0.00 (0.0%) |
| Nov 7 |
217.50 |
3.60 |
4 |
89.0 |
0.00 (0.0%) |
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