SPXU Dividend Type Payments

Although SPXU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraPro Short S&P500 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 UltraPro Short S&P500 (SPXU)
Bid Ask Last Change Volume P/E Market Cap
31.48 31.52 31.62 -0.14 3.9M - 0.0B

SPXU Dividend-Like Income Using Covered Calls

With SPXU at 31.62, 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% 0.95 0.3
5% 1.58 0.4
10% 3.16 0.9

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 SPXU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 43.00 0.10 29 0.3 11.48 (36.3%)
Jul 19 44.00 0.40 57 0.7 12.48 (39.5%)
5% Yield On SPXU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 41.00 0.15 29 0.5 9.48 (30.0%)
Jul 19 44.00 0.40 57 0.7 12.48 (39.5%)
10% Yield On SPXU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 38.00 0.35 29 1.2 6.48 (20.5%)
Jul 19 42.00 0.50 57 0.9 10.48 (33.1%)

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Want more examples? SPXT Dividend | SPXV Dividend