TMF Dividend Type Payments
Although TMF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily 20-Yr Treasury Bull 3x Shrs 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 20-Yr Treasury Bull 3x Shrs (TMF) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 39.47 |
39.55 |
39.49 |
+0.41 |
7.8M |
- |
0.3B |
TMF Dividend-Like Income Using Covered Calls
With TMF at 39.49, 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% |
1.18 |
0.3 |
| 5% |
1.97 |
0.5 |
| 10% |
3.95 |
1.1 |
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 TMF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
39.50 |
1.90 |
18 |
10.3 |
0.00 (0.0%) |
| May 9 |
39.50 |
2.00 |
25 |
7.8 |
0.00 (0.0%) |
| 5% Yield On TMF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
39.50 |
1.90 |
18 |
10.3 |
0.00 (0.0%) |
| May 9 |
39.50 |
2.00 |
25 |
7.8 |
0.00 (0.0%) |
| 10% Yield On TMF Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
39.50 |
1.90 |
18 |
10.3 |
0.00 (0.0%) |
| May 9 |
39.50 |
2.00 |
25 |
7.8 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
