SPDN Dividend Type Payments
Although SPDN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily S&P 500 Bear 1X Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:00 PM ET):
| Direxion Daily S&P 500 Bear 1X Shares (SPDN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 11.03 | 11.04 | 11.03 | -0.05 | 2.7M | - | 0.1B |
SPDN Dividend-Like Income Using Covered Calls
With SPDN at 11.03, 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% | 0.33 | 0.1 |
| 5% | 0.55 | 0.2 |
| 10% | 1.10 | 0.3 |
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:
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | SAVA dividend | |
| 2. | SPY dividend | 7. | XLF dividend | 2. | CRVS dividend | |
| 3. | EEM dividend | 8. | KWEB dividend | 3. | NMRA dividend | |
| 4. | FXI dividend | 9. | TLT dividend | 4. | ANAB dividend | |
| 5. | IWM dividend | 10. | KRE dividend | 5. | CLSK dividend | |
Want more examples? SPD Dividend | SPDV Dividend
