SSO Dividend Type Payments

ProShares Ultra S&P500 dividend

Although SSO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra 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 Ultra S&P500 (SSO)
Bid Ask Last Change Volume P/E Market Cap
58.92 58.93 59.01 +2.20 6.0M - 7.7B

SSO Dividend-Like Income Using Covered Calls

With SSO at 59.01, here's a table showing how big the annual "dividend" (i.e. 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% 1.77 0.5
5% 2.95 0.8
10% 5.90 1.6

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 SSO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 13 59.00 0.90 8 11.3 0.07 (0.1%)
Feb 20 59.00 1.25 15 8.3 0.07 (0.1%)
5% Yield On SSO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 13 59.00 0.90 8 11.3 0.07 (0.1%)
Feb 20 59.00 1.25 15 8.3 0.07 (0.1%)
10% Yield On SSO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 13 59.00 0.90 8 11.3 0.07 (0.1%)
Feb 20 59.00 1.25 15 8.3 0.07 (0.1%)

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Want more examples? SSNC Dividend | SSP Dividend