UCO Dividend Type Payments

PROSHARES ULTRA BLOOMBERG CRUD dividend

Although UCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA BLOOMBERG CRUD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:10 AM ET):

PROSHARES ULTRA BLOOMBERG CRUD (UCO)
Bid Ask Last Change Volume P/E Market Cap
28.87 28.88 28.87 +0.54 775K - 4.6B

UCO Dividend-Like Income Using Covered Calls

With UCO at 28.87, 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% 0.87 0.2
5% 1.44 0.4
10% 2.89 0.8

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 UCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 32.00 0.01 4 0.3 3.12 (10.8%)
Aug 31 32.50 0.04 11 0.4 3.62 (12.5%)
5% Yield On UCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 30.50 0.04 4 1.0 1.62 (5.6%)
Aug 31 31.50 0.11 11 1.0 2.62 (9.1%)
10% Yield On UCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 30.50 0.04 4 1.0 1.62 (5.6%)
Aug 31 31.50 0.11 11 1.0 2.62 (9.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.SPY dividend 6.GE dividend   1.MOMO dividend
2.EEM dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.GPS dividend
4.QQQ dividend 9.IWM dividend   4.AKRX dividend
5.XLF dividend 10.GDX dividend   5.GERN dividend

Want more examples? UCIB Dividend | UCTT Dividend