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 |
| 66.50 |
74.90 |
70.50 |
-0.39 |
73K |
- |
0.0B |
HIBL Dividend-Like Income Using Covered Calls
With HIBL at 70.50, 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% |
2.12 |
0.6 |
| 5% |
3.53 |
1.0 |
| 10% |
7.05 |
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 HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
78.59 |
6.90 |
141 |
4.9 |
3.69 (5.2%) |
| Feb 20 |
78.59 |
1.60 |
57 |
2.8 |
3.69 (5.2%) |
| 5% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
78.59 |
6.90 |
141 |
4.9 |
3.69 (5.2%) |
| Feb 20 |
78.59 |
1.60 |
57 |
2.8 |
3.69 (5.2%) |
| 10% Yield On HIBL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
78.59 |
6.90 |
141 |
4.9 |
3.69 (5.2%) |
| Feb 20 |
78.59 |
1.60 |
57 |
2.8 |
3.69 (5.2%) |
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