SRTY Dividend Type Payments

Although SRTY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRAPRO SHORT RUSSE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:20 PM ET):

PROSHARES ULTRAPRO SHORT RUSSE (SRTY)
Bid Ask Last Change Volume P/E Market Cap
28.76 28.77 28.77 +1.02 1.2M - 0.9B

SRTY Dividend-Like Income Using Covered Calls

With SRTY at 28.77, 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% 0.86 0.2
5% 1.44 0.4
10% 2.88 0.8

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 SRTY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 42.00 0.15 29 0.5 13.23 (46.0%)
Dec 21 31.00 1.85 64 2.9 2.23 (7.8%)
5% Yield On SRTY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 42.00 0.15 29 0.5 13.23 (46.0%)
Dec 21 31.00 1.85 64 2.9 2.23 (7.8%)
10% Yield On SRTY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 37.00 0.25 29 0.9 8.23 (28.6%)
Dec 21 31.00 1.85 64 2.9 2.23 (7.8%)

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

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.UVXY dividend
2.EWZ dividend 7.FXI dividend   2.AMD dividend
3.EEM dividend 8.VXX dividend   3.SNAP dividend
4.PBR dividend 9.IWM dividend   4.TWTR dividend
5.QQQ dividend 10.BAC dividend   5.AMRN dividend

Want more examples? SRT Dividend | SRVR Dividend