NAIL Dividend Type Payments
Although NAIL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Homebuilders & Supplies 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 Tue 4:16 PM ET):
| Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 88.00 |
90.00 |
88.46 |
+1.19 |
190K |
- |
0.0B |
NAIL Dividend-Like Income Using Covered Calls
With NAIL at 88.46, 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% |
2.65 |
0.7 |
| 5% |
4.42 |
1.2 |
| 10% |
8.85 |
2.4 |
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 NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
100.00 |
2.40 |
25 |
9.6 |
10.00 (11.3%) |
| Sep 19 |
100.00 |
18.60 |
270 |
6.9 |
10.00 (11.3%) |
| 5% Yield On NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
100.00 |
2.40 |
25 |
9.6 |
10.00 (11.3%) |
| Sep 19 |
100.00 |
18.60 |
270 |
6.9 |
10.00 (11.3%) |
| 10% Yield On NAIL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
100.00 |
2.40 |
25 |
9.6 |
10.00 (11.3%) |
| Sep 19 |
100.00 |
18.60 |
270 |
6.9 |
10.00 (11.3%) |
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