UVXY Dividend Type Payments

Proshares Ultra VIX Short-Term dividend

Although UVXY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Proshares Ultra VIX Short-Term 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 VIX Short-Term (UVXY)
Bid Ask Last Change Volume P/E Market Cap
36.47 36.57 36.54 +0.61 18.8M - 0.0B

UVXY Dividend-Like Income Using Covered Calls

With UVXY at 36.54, 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% 1.10 0.3
5% 1.83 0.5
10% 3.65 1.0

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 UVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 70.00 0.05 8 0.6 33.43 (91.5%)
May 31 80.00 0.07 15 0.5 43.43 (118.9%)
5% Yield On UVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 70.00 0.05 8 0.6 33.43 (91.5%)
May 31 65.00 0.18 15 1.2 28.43 (77.8%)
10% Yield On UVXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 60.00 0.10 8 1.3 23.43 (64.1%)
May 31 65.00 0.18 15 1.2 28.43 (77.8%)

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Want more examples? UVV Dividend | UWM Dividend