QQQE Dividend Type Payments

Although QQQE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion NASDAQ-100 Equal Weighted Index Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE)
Bid Ask Last Change Volume P/E Market Cap
97.65 101.50 99.45 +0.74 73K - 0.5B

QQQE Dividend-Like Income Using Covered Calls

With QQQE at 99.45, 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% 2.98 0.8
5% 4.97 1.4
10% 9.95 2.7

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 QQQE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 101.00 1.15 44 1.5 0.00 (0.0%)
Dec 19 105.00 2.30 170 1.4 3.50 (3.5%)
5% Yield On QQQE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 101.00 1.15 44 1.5 0.00 (0.0%)

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