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 Fri 4:16 PM ET):

PROSHARES ULTRA 7-10-YEAR TREASURY (UST)
Bid Ask Last Change Volume P/E Market Cap
51.53 51.56 51.53 -0.14 12K - 0.4B

UST Dividend-Like Income Using Covered Calls

With UST at 51.53, 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% 1.55 0.4
5% 2.58 0.7
10% 5.15 1.4

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
Nov 16 52.00 0.25 29 0.9 0.44 (0.9%)
Feb 15 52.00 0.75 120 0.6 0.44 (0.9%)
5% Yield On UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 52.00 0.25 29 0.9 0.44 (0.9%)

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Want more examples? USSD Dividend | USTB Dividend