SMN Dividend Type Payments

PROSHARES ULTRA-SHORT BASIC MAT dividend

Although SMN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT BASIC MAT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:15 PM ET):

PROSHARES ULTRA-SHORT BASIC MAT (SMN)
Bid Ask Last Change Volume P/E Market Cap
26.28 26.44 26.12 -0.72 1K - 0.0B

SMN Dividend-Like Income Using Covered Calls

With SMN at 26.12, 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% 0.78 0.2
5% 1.31 0.4
10% 2.61 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 SMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 29.00 0.10 37 0.3 2.56 (9.8%)
Oct 19 32.00 0.20 65 0.3 5.56 (21.3%)
5% Yield On SMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 29.00 0.35 65 0.5 2.56 (9.8%)
Jan 18 27.00 0.60 156 0.4 0.56 (2.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.JWN dividend
2.EEM dividend 7.FB dividend   2.NVDA dividend
3.QQQ dividend 8.FXI dividend   3.ENPH dividend
4.BAC dividend 9.GLD dividend   4.UVXY dividend
5.SPX dividend 10.AABA dividend   5.AMAT dividend

Want more examples? SMMU Dividend | SMP Dividend