PST Dividend Type Payments

ProShares UltraShort Lehman 7-10 Year Treasury dividend

Although PST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort Lehman 7-10 Year Treasury to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:25 PM ET):

ProShares UltraShort Lehman 7-10 Year Treasury (PST)
Bid Ask Last Change Volume P/E Market Cap
23.24 23.26 23.29 +0.01 1K - 0.0B

PST Dividend-Like Income Using Covered Calls

With PST at 23.29, 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% 0.70 0.2
5% 1.16 0.3
10% 2.33 0.6

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 PST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 24.00 0.20 57 0.4 0.74 (3.2%)
Oct 17 24.00 0.40 120 0.3 0.74 (3.2%)
5% Yield On PST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 24.00 0.20 57 0.4 0.74 (3.2%)
Oct 17 24.00 0.40 120 0.3 0.74 (3.2%)

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Want more examples? PSR Dividend | PSTG Dividend