URE Dividend Type Payments

PROSHARES ULTRA REAL ESTATE dividend

Although URE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA REAL ESTATE 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 REAL ESTATE (URE)
Bid Ask Last Change Volume P/E Market Cap
67.98 69.58 68.89 -0.76 13K - 1.4B

URE Dividend-Like Income Using Covered Calls

With URE at 68.89, 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% 2.07 0.6
5% 3.44 0.9
10% 6.89 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 URE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 72.00 0.19 32 0.6 2.42 (3.5%)
Oct 19 72.00 0.68 60 1.1 2.42 (3.5%)
5% Yield On URE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 71.00 0.49 32 1.5 1.42 (2.1%)
Oct 19 72.00 0.68 60 1.1 2.42 (3.5%)
10% Yield On URE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 0.81 32 2.5 0.42 (0.6%)
Oct 19 70.00 1.40 60 2.3 0.42 (0.6%)

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