QID Dividend Type Payments

PROSHARES ULTRA-SHORT QQQ dividend

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 Mon 4:16 PM ET):

PROSHARES ULTRA-SHORT QQQ (QID)
Bid Ask Last Change Volume P/E Market Cap
40.82 40.90 40.78 +1.00 6.8M - 5.5B

QID Dividend-Like Income Using Covered Calls

With QID at 40.78, 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% 1.22 0.3
5% 2.04 0.6
10% 4.08 1.1

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
Oct 19 48.00 0.02 5 0.4 7.10 (17.4%)
Nov 16 50.00 0.60 33 1.8 9.10 (22.3%)
5% Yield On QID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 46.00 0.05 5 1.0 5.10 (12.5%)
Nov 16 50.00 0.60 33 1.8 9.10 (22.3%)
10% Yield On QID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 45.00 0.11 5 2.2 4.10 (10.1%)
Nov 16 50.00 0.60 33 1.8 9.10 (22.3%)

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Want more examples? QHC Dividend | QIWI Dividend