SVXY Dividend Type Payments

ProShares Short VIX Short Term Futures ETF dividend

Although SVXY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Short VIX Short Term Futures ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:45 AM ET):

ProShares Short VIX Short Term Futures ETF (SVXY)
Bid Ask Last Change Volume P/E Market Cap
45.66 45.67 45.66 -0.29 1.7M - 0.0B

SVXY Dividend-Like Income Using Covered Calls

With SVXY at 45.66, 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% 1.37 0.4
5% 2.28 0.6
10% 4.57 1.3

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
Dec 21 49.00 0.02 5 0.4 3.33 (7.3%)
Dec 28 49.50 0.05 12 0.4 3.83 (8.4%)
5% Yield On SVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 48.50 0.04 5 0.8 2.83 (6.2%)
Dec 28 49.00 0.12 12 1.0 3.33 (7.3%)
10% Yield On SVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 48.00 0.10 5 2.0 2.33 (5.1%)
Dec 28 48.00 0.27 12 2.3 2.33 (5.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? SVVC Dividend | SWCH Dividend