DFEN Dividend Type Payments
Although DFEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Aerospace & Defense 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 Aerospace & Defense Bull 3X Shares (DFEN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 68.00 |
69.02 |
68.47 |
+4.74 |
265K |
- |
0.0B |
DFEN Dividend-Like Income Using Covered Calls
With DFEN at 68.47, 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% |
2.05 |
0.6 |
| 5% |
3.42 |
0.9 |
| 10% |
6.85 |
1.9 |
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 DFEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
69.45 |
2.75 |
26 |
10.6 |
0.43 (0.6%) |
| Apr 17 |
69.45 |
6.70 |
117 |
5.7 |
0.43 (0.6%) |
| 5% Yield On DFEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
69.45 |
2.75 |
26 |
10.6 |
0.43 (0.6%) |
| Apr 17 |
69.45 |
6.70 |
117 |
5.7 |
0.43 (0.6%) |
| 10% Yield On DFEN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
69.45 |
2.75 |
26 |
10.6 |
0.43 (0.6%) |
| Apr 17 |
69.45 |
6.70 |
117 |
5.7 |
0.43 (0.6%) |
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