UBT Dividend Type Payments

ProShares Ultra 20+ Year Treasury dividend

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 Tue 4:16 PM ET):

ProShares Ultra 20+ Year Treasury (UBT)
Bid Ask Last Change Volume P/E Market Cap
73.54 73.74 73.56 -0.07 17K - 0.0B

UBT Dividend-Like Income Using Covered Calls

With UBT at 73.56, 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% 2.21 0.6
5% 3.68 1.0
10% 7.36 2.0

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 21 74.00 0.70 11 6.4 0.26 (0.4%)
Jan 18 79.00 0.25 39 0.6 5.26 (7.2%)
5% Yield On UBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 74.00 0.70 11 6.4 0.26 (0.4%)
Jan 18 77.00 0.50 39 1.3 3.26 (4.4%)
10% Yield On UBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 74.00 0.70 11 6.4 0.26 (0.4%)
Jan 18 75.00 1.00 39 2.6 1.26 (1.7%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? UBSI Dividend | UCBI Dividend