UST Dividend Type Payments

ProShares Ultra 7-10 Year Treasury dividend

Although UST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra 7-10 Year Treasury 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 Ultra 7-10 Year Treasury (UST)
Bid Ask Last Change Volume P/E Market Cap
41.71 43.18 42.52 -0.29 3K - 0.0B

UST Dividend-Like Income Using Covered Calls

With UST at 42.52, 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% 1.28 0.3
5% 2.13 0.6
10% 4.25 1.2

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 UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 43.00 0.30 24 0.5 0.00 (0.0%)
Sep 19 43.00 0.70 59 0.9 0.00 (0.0%)
5% Yield On UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 43.00 0.70 59 0.9 0.00 (0.0%)
Nov 21 43.00 1.15 122 0.8 0.00 (0.0%)

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Want more examples? USSG Dividend | UTES Dividend