SVXY Dividend Type Payments

PROSHARES SHORT VIX SHORT-TERM dividend

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

PROSHARES SHORT VIX SHORT-TERM (SVXY)
Bid Ask Last Change Volume P/E Market Cap
50.75 50.98 50.84 -0.20 3.8M - 5.3B

SVXY Dividend-Like Income Using Covered Calls

With SVXY at 50.84, 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% 1.53 0.4
5% 2.54 0.7
10% 5.08 1.4

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 SVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 53.00 0.04 5 0.8 2.02 (4.0%)
Nov 2 54.50 0.07 12 0.6 3.52 (6.9%)
5% Yield On SVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 53.00 0.04 5 0.8 2.02 (4.0%)
Nov 2 54.00 0.15 12 1.3 3.02 (5.9%)
10% Yield On SVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 52.00 0.25 5 5.0 1.02 (2.0%)
Nov 2 53.50 0.26 12 2.2 2.52 (5.0%)

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