TZA Dividend Type Payments
Although TZA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Small Cap Bear 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 9:40 AM ET):
| Direxion Small Cap Bear 3X Shares (TZA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 8.12 | 8.13 | 8.13 | -0.08 | 3.6M | - | 0.1B |
TZA Dividend-Like Income Using Covered Calls
With TZA at 8.13, 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% | 0.24 | 0.1 |
| 5% | 0.41 | 0.1 |
| 10% | 0.81 | 0.2 |
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 TZA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 12.00 | 0.05 | 31 | 0.2 | 3.87 (47.6%) | |
| Nov 7 | 10.00 | 0.01 | 3 | 0.3 | 1.87 (23.0%) | |
| 5% Yield On TZA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 12.00 | 0.05 | 31 | 0.2 | 3.87 (47.6%) | |
| Nov 7 | 10.00 | 0.01 | 3 | 0.3 | 1.87 (23.0%) | |
| 10% Yield On TZA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 5 | 8.50 | 0.15 | 31 | 0.5 | 0.37 (4.6%) | |
| Nov 7 | 10.00 | 0.01 | 3 | 0.3 | 1.87 (23.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | TTD dividend | |
| 2. | KVUE dividend | 7. | INTC dividend | 2. | SOUN dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | ENVX dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | CELH dividend | |
| 5. | GLD dividend | 10. | SPY dividend | 5. | LYFT dividend | |
Want more examples? TYO Dividend | TZOO Dividend
