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 Wed 4:16 PM ET):

ProShares UltraShort Lehman 7-10 Year Treasury (PST)
Bid Ask Last Change Volume P/E Market Cap
22.54 22.56 22.56 -0.17 1K - 0.0B

PST Dividend-Like Income Using Covered Calls

With PST at 22.56, 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% 0.68 0.2
5% 1.13 0.3
10% 2.26 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
Oct 17 23.00 0.25 66 0.4 0.44 (2.0%)
Sep 19 23.00 0.15 38 0.4 0.44 (2.0%)
5% Yield On PST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 23.00 0.25 66 0.4 0.44 (2.0%)
Sep 19 23.00 0.15 38 0.4 0.44 (2.0%)

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Want more examples? PSR Dividend | PSTG Dividend