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 Tue 4:16 PM ET):

ProShares UltraShort QQQ (QID)
Bid Ask Last Change Volume P/E Market Cap
45.64 45.65 45.73 +0.02 5.6M - 0.3B

QID Dividend-Like Income Using Covered Calls

With QID at 45.73, 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% 1.37 0.4
5% 2.29 0.6
10% 4.57 1.3

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
May 17 46.00 0.80 11 7.3 0.35 (0.8%)
Oct 18 46.00 2.15 165 1.3 0.35 (0.8%)
5% Yield On QID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 46.00 0.80 11 7.3 0.35 (0.8%)
Oct 18 46.00 2.15 165 1.3 0.35 (0.8%)
10% Yield On QID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 46.00 0.80 11 7.3 0.35 (0.8%)
Oct 18 46.00 2.15 165 1.3 0.35 (0.8%)

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Want more examples? QGRO Dividend | QINT Dividend