QID Dividend Type Payments
Although QID has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT QQQ to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| PROSHARES ULTRA-SHORT QQQ (QID) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 37.88 | 37.96 | 37.93 | -0.03 | 3.6M | - | 5.5B |
QID Dividend-Like Income Using Covered Calls
With QID at 37.93, 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% | 1.14 | 0.3 |
| 5% | 1.90 | 0.5 |
| 10% | 3.79 | 1.0 |
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 | |
| Sep 21 | 50.00 | 0.14 | 36 | 0.4 | 12.04 (31.7%) | |
| Oct 19 | 55.00 | 0.21 | 64 | 0.3 | 17.04 (44.9%) | |
| 5% Yield On QID Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 21 | 47.00 | 0.19 | 36 | 0.5 | 9.04 (23.8%) | |
| Oct 19 | 50.00 | 0.36 | 64 | 0.6 | 12.04 (31.7%) | |
| 10% Yield On QID Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 21 | 43.00 | 0.40 | 36 | 1.1 | 5.04 (13.3%) | |
| Oct 19 | 43.00 | 0.84 | 64 | 1.3 | 5.04 (13.3%) | |
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| Top 10 Open Interest For Sep 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | EEM dividend | 6. | GE dividend | 1. | COTY dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | LB dividend | |
| 3. | SPX dividend | 8. | FB dividend | 3. | AKRX dividend | |
| 4. | QQQ dividend | 9. | IWM dividend | 4. | UVXY dividend | |
| 5. | XLF dividend | 10. | GDX dividend | 5. | GPS dividend | |
Want more examples? QHC Dividend | QIWI Dividend
