UDOW Dividend Type Payments

Although UDOW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Proshares Ultrapro DOW 30 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Proshares Ultrapro DOW 30 (UDOW)
Bid Ask Last Change Volume P/E Market Cap
97.24 97.63 97.37 +0.71 1.1M - 0.0B

UDOW Dividend-Like Income Using Covered Calls

With UDOW at 97.37, 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% 2.92 0.8
5% 4.87 1.3
10% 9.74 2.7

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 UDOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 108.00 0.30 24 1.3 10.37 (10.7%)
Apr 18 104.00 2.65 58 4.6 6.37 (6.5%)
5% Yield On UDOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 107.00 0.40 24 1.7 9.37 (9.6%)
Apr 18 104.00 2.65 58 4.6 6.37 (6.5%)
10% Yield On UDOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 105.00 0.65 24 2.7 7.37 (7.6%)
Apr 18 104.00 2.65 58 4.6 6.37 (6.5%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.VIPS dividend
2.EEM dividend 7.GE dividend   2.ROKU dividend
3.SPY dividend 8.BAC dividend   3.FSLR dividend
4.QQQ dividend 9.XOP dividend   4.IQ dividend
5.FXI dividend 10.LLY dividend   5.TTD dividend

Want more examples? UDN Dividend | UDR Dividend