QID Dividend Type Payments

ProShares UltraShort QQQ dividend

Although QID has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort QQQ to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:50 PM ET):

ProShares UltraShort QQQ (QID)
Bid Ask Last Change Volume P/E Market Cap
25.57 25.58 25.57 -0.22 2.8M - 0.1B

QID Dividend-Like Income Using Covered Calls

With QID at 25.57, 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% 0.77 0.2
5% 1.28 0.4
10% 2.56 0.7

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 QID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 26.00 1.20 50 2.4 0.42 (1.6%)
Oct 17 26.00 1.90 113 1.7 0.42 (1.6%)
5% Yield On QID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 26.00 1.20 50 2.4 0.42 (1.6%)
Oct 17 26.00 1.90 113 1.7 0.42 (1.6%)
10% Yield On QID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 26.00 1.20 50 2.4 0.42 (1.6%)
Oct 17 26.00 1.90 113 1.7 0.42 (1.6%)

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

 
 
Top 10 Open Interest For Jul 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.COGT dividend
2.SLV dividend 7.TSLA dividend   2.ENPH dividend
3.SPY dividend 8.AAPL dividend   3.PTON dividend
4.GLD dividend 9.FXI dividend   4.SERV dividend
5.TLT dividend 10.CLSK dividend   5.ENVX dividend

Want more examples? QGRO Dividend | QINT Dividend