UPRO Dividend Type Payments
Although UPRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraPro S&P 500 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| ProShares UltraPro S&P 500 (UPRO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 70.48 |
70.51 |
70.73 |
-1.18 |
3.8M |
- |
4.7B |
UPRO Dividend-Like Income Using Covered Calls
With UPRO at 70.73, 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% |
2.12 |
0.6 |
| 5% |
3.54 |
1.0 |
| 10% |
7.07 |
1.9 |
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 UPRO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 6 |
71.00 |
4.60 |
33 |
13.9 |
0.49 (0.7%) |
| May 9 |
71.00 |
1.70 |
5 |
34.0 |
0.49 (0.7%) |
| 5% Yield On UPRO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 6 |
71.00 |
4.60 |
33 |
13.9 |
0.49 (0.7%) |
| May 9 |
71.00 |
1.70 |
5 |
34.0 |
0.49 (0.7%) |
| 10% Yield On UPRO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 6 |
71.00 |
4.60 |
33 |
13.9 |
0.49 (0.7%) |
| May 9 |
71.00 |
1.70 |
5 |
34.0 |
0.49 (0.7%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
