VIXM Dividend Type Payments

Proshares VIX MID-Term Futures dividend

Although VIXM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Proshares VIX MID-Term Futures 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 VIX MID-Term Futures (VIXM)
Bid Ask Last Change Volume P/E Market Cap
24.40 27.50 25.76 +0.43 8K - 0.0B

VIXM Dividend-Like Income Using Covered Calls

With VIXM at 25.76, 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% 0.77 0.2
5% 1.29 0.4
10% 2.58 0.7

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 VIXM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 28 28.00 0.05 15 0.3 0.50 (1.9%)
Jan 4 29.50 0.05 22 0.2 2.00 (7.8%)
5% Yield On VIXM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 28 27.50 0.10 15 0.7 0.00 (0.0%)
Jan 4 28.50 0.10 22 0.5 1.00 (3.9%)
10% Yield On VIXM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 4 27.50 0.25 22 1.1 0.00 (0.0%)
Jan 11 27.50 0.35 29 1.2 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? VIVO Dividend | VIXY Dividend