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 Thu 3:40 PM ET):
ProShares Ultra 20+ Year Treasury (UBT) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
17.39 | 17.43 | 17.41 | -0.27 | 83K | - | 0.0B |
UBT Dividend-Like Income Using Covered Calls
With UBT at 17.41, 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% | 0.52 | 0.1 |
5% | 0.87 | 0.2 |
10% | 1.74 | 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 | |
May 17 | 18.00 | 0.25 | 23 | 1.1 | 0.57 (3.3%) | |
Jun 21 | 18.00 | 0.55 | 58 | 0.9 | 0.57 (3.3%) |
5% Yield On UBT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 18.00 | 0.25 | 23 | 1.1 | 0.57 (3.3%) | |
Jun 21 | 18.00 | 0.55 | 58 | 0.9 | 0.57 (3.3%) |
10% Yield On UBT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 18.00 | 0.25 | 23 | 1.1 | 0.57 (3.3%) | |
Jun 21 | 18.00 | 0.55 | 58 | 0.9 | 0.57 (3.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | QQQ dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | SNAP dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | PINS dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | UPST dividend |
Want more examples? UBSI Dividend | UBX Dividend