TTT Dividend Type Payments

PROSHARES ULTRAPRO SHORT 20+ Y dividend

Although TTT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRAPRO SHORT 20+ Y 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 ULTRAPRO SHORT 20+ Y (TTT)
Bid Ask Last Change Volume P/E Market Cap
26.20 26.21 26.20 -0.51 110K 21 0.9B

TTT Dividend-Like Income Using Covered Calls

With TTT at 26.20, 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% 0.79 0.2
5% 1.31 0.4
10% 2.62 0.7

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 TTT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 28.00 0.15 33 0.5 1.79 (6.8%)
Oct 19 30.00 0.15 61 0.2 3.79 (14.5%)
5% Yield On TTT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 28.00 0.15 33 0.5 1.79 (6.8%)
Oct 19 29.00 0.30 61 0.5 2.79 (10.6%)
10% Yield On TTT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 27.00 0.40 33 1.2 0.79 (3.0%)
Oct 19 28.00 0.45 61 0.7 1.79 (6.8%)

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