TYD Dividend Type Payments
Although TYD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily 10-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 Thu 11:00 AM ET):
| Direxion Daily 10-Yr Treasury Bull 3x Shrs (TYD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 24.31 |
24.39 |
24.37 |
+0.06 |
8K |
- |
0.0B |
TYD Dividend-Like Income Using Covered Calls
With TYD at 24.37, 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% |
0.73 |
0.2 |
| 5% |
1.22 |
0.3 |
| 10% |
2.44 |
0.7 |
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 TYD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
25.00 |
0.45 |
37 |
1.2 |
0.61 (2.5%) |
| May 16 |
25.00 |
1.45 |
184 |
0.8 |
0.61 (2.5%) |
| 5% Yield On TYD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
25.00 |
0.45 |
37 |
1.2 |
0.61 (2.5%) |
| May 16 |
25.00 |
1.45 |
184 |
0.8 |
0.61 (2.5%) |
| 10% Yield On TYD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
25.00 |
0.45 |
37 |
1.2 |
0.61 (2.5%) |
| May 16 |
25.00 |
1.45 |
184 |
0.8 |
0.61 (2.5%) |
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