HIBS Dividend Type Payments
Although HIBS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 High Beta 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 Fri 4:16 PM ET):
| Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 18.64 |
20.81 |
19.74 |
+1.07 |
334K |
- |
0.0B |
HIBS Dividend-Like Income Using Covered Calls
With HIBS at 19.74, 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% |
0.59 |
0.2 |
| 5% |
0.99 |
0.3 |
| 10% |
1.97 |
0.5 |
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 HIBS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
21.00 |
0.80 |
183 |
0.4 |
0.19 (1.0%) |
| Feb 21 |
22.00 |
1.10 |
99 |
1.1 |
1.19 (6.0%) |
| 5% Yield On HIBS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
21.00 |
0.80 |
183 |
0.4 |
0.19 (1.0%) |
| Feb 21 |
22.00 |
1.10 |
99 |
1.1 |
1.19 (6.0%) |
| 10% Yield On HIBS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 21 |
22.00 |
1.10 |
99 |
1.1 |
1.19 (6.0%) |
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