HIBL Dividend Type Payments
Although HIBL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 High Beta 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 Fri 4:16 PM ET):
| Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 42.48 |
44.68 |
42.46 |
-2.53 |
57K |
- |
0.0B |
HIBL Dividend-Like Income Using Covered Calls
With HIBL at 42.46, 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% |
1.27 |
0.3 |
| 5% |
2.12 |
0.6 |
| 10% |
4.25 |
1.2 |
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 HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
46.00 |
0.40 |
36 |
1.1 |
1.32 (3.1%) |
| May 16 |
45.00 |
4.40 |
183 |
2.4 |
0.32 (0.8%) |
| 5% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
46.00 |
0.40 |
36 |
1.1 |
1.32 (3.1%) |
| May 16 |
45.00 |
4.40 |
183 |
2.4 |
0.32 (0.8%) |
| 10% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
45.00 |
4.40 |
183 |
2.4 |
0.32 (0.8%) |
| Jan 17 |
45.00 |
1.80 |
64 |
2.8 |
0.32 (0.8%) |
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