BIS Dividend Type Payments

Although BIS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES TRUST PROSHARES ULTR 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):

PROSHARES TRUST PROSHARES ULTR (BIS)
Bid Ask Last Change Volume P/E Market Cap
17.65 18.15 17.94 +0.52 68K - 0.3B

BIS Dividend-Like Income Using Covered Calls

With BIS at 17.94, here's a table showing how big the annual "dividend" (ie. 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% 1.79 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 BIS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.05 30 0.2 6.85 (38.2%)
Dec 21 26.00 0.15 65 0.2 7.85 (43.8%)
5% Yield On BIS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 24.00 0.10 30 0.3 5.85 (32.6%)
Dec 21 25.00 0.25 65 0.4 6.85 (38.2%)
10% Yield On BIS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 23.00 0.15 30 0.5 4.85 (27.0%)
Dec 21 23.00 0.35 65 0.5 4.85 (27.0%)

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Want more examples? BIP Dividend | BITA Dividend