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 Wed 2:50 PM ET):
| Direxion Daily S&P 500 Bear 1X Shares (SPDN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 10.65 | 10.66 | 10.65 | -0.08 | 4.8M | - | 0.1B |
SPDN Dividend-Like Income Using Covered Calls
With SPDN at 10.65, 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% | 0.32 | 0.1 |
| 5% | 0.53 | 0.1 |
| 10% | 1.07 | 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:
| 3% Yield On SPDN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 11.00 | 0.10 | 86 | 0.1 | 0.34 (3.2%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | QUBT dividend | |
| 2. | TLT dividend | 7. | TSLA dividend | 2. | IONQ dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | SMCI dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | SNAP dividend | |
| 5. | FXI dividend | 10. | ASHR dividend | 5. | MBLY dividend | |
Want more examples? SPD Dividend | SPDV Dividend
