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 Wed 4:16 PM ET):
| Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 17.41 | 19.58 | 18.08 | -0.97 | 321K | - | 0.0B |
HIBS Dividend-Like Income Using Covered Calls
With HIBS at 18.08, 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% | 0.54 | 0.1 |
| 5% | 0.90 | 0.2 |
| 10% | 1.81 | 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 | |
| Mar 21 | 25.00 | 0.05 | 24 | 0.2 | 5.42 (30.0%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | SOUN dividend | |
| 2. | SPY dividend | 7. | INTC dividend | 2. | SRPT dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | BBAI dividend | |
| 4. | EEM dividend | 9. | TLT dividend | 4. | LUNR dividend | |
| 5. | IWM dividend | 10. | SLV dividend | 5. | QBTS dividend | |
Want more examples? HIBL Dividend | HIG Dividend
