SEF Dividend Type Payments

ProShares Short Financials dividend

Although SEF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Short Financials to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

ProShares Short Financials (SEF)
Bid Ask Last Change Volume P/E Market Cap
24.42 24.80 24.57 +0.12 10K - 0.0B

SEF Dividend-Like Income Using Covered Calls

With SEF at 24.57, 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% 0.74 0.2
5% 1.23 0.3
10% 2.46 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 SEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 25.00 0.10 9 1.1 0.20 (0.8%)
Jan 18 26.00 0.15 37 0.4 1.20 (4.9%)
5% Yield On SEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 25.00 0.10 9 1.1 0.20 (0.8%)
Jan 18 26.00 0.15 37 0.4 1.20 (4.9%)
10% Yield On SEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 25.00 0.10 9 1.1 0.20 (0.8%)
Jan 18 25.00 0.40 37 1.1 0.20 (0.8%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.VXX dividend   4. dividend
5.IWM dividend 10.BAC dividend   5. dividend

Want more examples? SEED Dividend | SEIC Dividend