UBT Dividend Type Payments
Although UBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra 20+ Year Treasury 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 20+ Year Treasury (UBT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 17.02 | 17.06 | 17.03 | -0.19 | 93K | - | 0.0B |
UBT Dividend-Like Income Using Covered Calls
With UBT at 17.03, 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% | 0.51 | 0.1 |
| 5% | 0.85 | 0.2 |
| 10% | 1.70 | 0.5 |
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 UBT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 17.00 | 0.30 | 15 | 1.6 | 0.00 (0.0%) | |
| Apr 17 | 17.00 | 0.70 | 134 | 0.5 | 0.00 (0.0%) | |
| 5% Yield On UBT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 17.00 | 0.30 | 15 | 1.6 | 0.00 (0.0%) | |
| Apr 17 | 17.00 | 0.70 | 134 | 0.5 | 0.00 (0.0%) | |
| 10% Yield On UBT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 17.00 | 0.30 | 15 | 1.6 | 0.00 (0.0%) | |
| Apr 17 | 17.00 | 0.70 | 134 | 0.5 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | MRVL dividend | |
| 2. | SPY dividend | 7. | TLT dividend | 2. | VRT dividend | |
| 3. | QQQ dividend | 8. | SLV dividend | 3. | FULC dividend | |
| 4. | IWM dividend | 9. | GLD dividend | 4. | RZLT dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | UAMY dividend | |
Want more examples? UBSI Dividend | UCC Dividend
