GDXS Dividend Type Payments

Although GDXS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT GOLD MINE 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 ULTRA-SHORT GOLD MINE (GDXS)
Bid Ask Last Change Volume P/E Market Cap
16.94 17.05 16.98 -0.12 2K - 0.0B

GDXS Dividend-Like Income Using Covered Calls

With GDXS at 16.98, 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% 0.51 0.1
5% 0.85 0.2
10% 1.70 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 GDXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.05 30 0.2 2.95 (17.4%)
Feb 15 22.00 0.25 121 0.2 4.95 (29.2%)
5% Yield On GDXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 19.00 0.10 30 0.3 1.95 (11.5%)
Feb 15 21.00 0.40 121 0.3 3.95 (23.3%)
10% Yield On GDXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 18.00 0.30 30 1.0 0.95 (5.6%)
Feb 15 19.00 0.80 121 0.7 1.95 (11.5%)

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Want more examples? GDXJ Dividend | GDXX Dividend