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 |
37.72 | 37.80 | 37.78 | -0.34 | 2.5M | - | 0.0B |
QID Dividend-Like Income Using Covered Calls
With QID at 37.78, 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% | 1.13 | 0.3 |
5% | 1.89 | 0.5 |
10% | 3.78 | 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 | |
Mar 15 | 47.00 | 0.10 | 29 | 0.3 | 9.20 (24.4%) | |
Apr 18 | 52.00 | 0.26 | 63 | 0.4 | 14.20 (37.6%) |
5% Yield On QID Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 15 | 45.00 | 0.19 | 29 | 0.7 | 7.20 (19.1%) | |
Apr 18 | 50.00 | 0.36 | 63 | 0.6 | 12.20 (32.3%) |
10% Yield On QID Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 15 | 43.00 | 0.32 | 29 | 1.1 | 5.20 (13.8%) | |
Apr 18 | 45.00 | 0.68 | 63 | 1.1 | 7.20 (19.1%) |
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Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPX dividend | 6. | EWZ dividend | 1. | ICPT dividend | |
2. | EEM dividend | 7. | GE dividend | 2. | ROKU dividend | |
3. | SPY dividend | 8. | XOP dividend | 3. | KPTI dividend | |
4. | FXI dividend | 9. | BAC dividend | 4. | BHC dividend | |
5. | QQQ dividend | 10. | JD dividend | 5. | VKTX dividend |
Want more examples? QHC Dividend | QIWI Dividend