GUSH Dividend Type Payments
Although GUSH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:15 PM ET):
| Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares (GUSH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 33.21 |
33.23 |
33.22 |
+1.52 |
639K |
- |
0.0B |
GUSH Dividend-Like Income Using Covered Calls
With GUSH at 33.22, 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% |
1.00 |
0.3 |
| 5% |
1.66 |
0.5 |
| 10% |
3.32 |
0.9 |
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 GUSH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
34.00 |
1.45 |
33 |
4.4 |
0.77 (2.3%) |
| Jan 17 |
33.25 |
2.45 |
61 |
4.0 |
0.02 (0.1%) |
| 5% Yield On GUSH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
34.00 |
1.45 |
33 |
4.4 |
0.77 (2.3%) |
| Jan 17 |
33.25 |
2.45 |
61 |
4.0 |
0.02 (0.1%) |
| 10% Yield On GUSH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
34.00 |
1.45 |
33 |
4.4 |
0.77 (2.3%) |
| Jan 17 |
33.25 |
2.45 |
61 |
4.0 |
0.02 (0.1%) |
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