BZQ Dividend Type Payments

Although BZQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort MSCI Brazil Capped to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

ProShares UltraShort MSCI Brazil Capped (BZQ)
Bid Ask Last Change Volume P/E Market Cap
36.00 36.86 36.37 +1.39 80K - 0.0B

BZQ Dividend-Like Income Using Covered Calls

With BZQ at 36.37, 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% 1.09 0.3
5% 1.82 0.5
10% 3.64 1.0

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 BZQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 47.00 0.10 15 0.7 10.14 (27.9%)
Jan 18 50.00 0.45 43 1.0 13.14 (36.1%)
5% Yield On BZQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 47.00 0.10 15 0.7 10.14 (27.9%)
Jan 18 50.00 0.45 43 1.0 13.14 (36.1%)
10% Yield On BZQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 46.00 0.15 15 1.0 9.14 (25.1%)
Jan 18 50.00 0.45 43 1.0 13.14 (36.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.IWM dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.USO dividend   4. dividend
5.EWZ dividend 10.VXX dividend   5. dividend

Want more examples? BZH Dividend | BZUN Dividend