USOD Dividend Type Payments

Although USOD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United States 3x Short Oil Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

United States 3x Short Oil Fund (USOD)
Bid Ask Last Change Volume P/E Market Cap
5.23 5.37 5.32 -0.20 47K - 0.0B

USOD Dividend-Like Income Using Covered Calls

With USOD at 5.32, 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% 0.16 0.0
5% 0.27 0.1
10% 0.53 0.1

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:

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Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.ARQL dividend
2.SPX dividend 7.BAC dividend   2.ITCI dividend
3.EEM dividend 8.VXX dividend   3.CARA dividend
4.QQQ dividend 9.AAPL dividend   4.MAXR dividend
5.EWZ dividend 10.EFA dividend   5.CBAY dividend

Want more examples? USO Dividend | USOU Dividend