KOLD Dividend Type Payments

PROSHARES ULTRA-SHORT BLOOM NAT dividend

Although KOLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT BLOOM NAT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:50 PM ET):

PROSHARES ULTRA-SHORT BLOOM NAT (KOLD)
Bid Ask Last Change Volume P/E Market Cap
29.79 29.84 29.58 +0.20 18K - 0.1B

KOLD Dividend-Like Income Using Covered Calls

With KOLD at 29.58, 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% 0.89 0.2
5% 1.48 0.4
10% 2.96 0.8

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 KOLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 31.00 0.20 4 5.0 1.16 (3.9%)
Nov 16 40.00 0.15 32 0.5 10.16 (34.3%)
5% Yield On KOLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 31.00 0.20 4 5.0 1.16 (3.9%)
Nov 16 40.00 0.15 32 0.5 10.16 (34.3%)
10% Yield On KOLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 31.00 0.20 4 5.0 1.16 (3.9%)
Nov 16 36.00 0.45 32 1.4 6.16 (20.8%)

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Want more examples? KOL Dividend | KONA Dividend