VIXM Dividend Type Payments

ProShares VIX Mid-Term Futures ETF dividend

Although VIXM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares VIX Mid-Term Futures ETF 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 ETF (VIXM)
Bid Ask Last Change Volume P/E Market Cap
16.60 17.10 17.05 +0.28 981K - 0.0B

VIXM Dividend-Like Income Using Covered Calls

With VIXM at 17.05, 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% 0.51 0.1
5% 0.85 0.2
10% 1.71 0.5

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
Aug 15 25.00 0.05 15 0.3 7.90 (46.3%)
Mar 20 18.00 0.45 232 0.2 0.90 (5.3%)
5% Yield On VIXM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 25.00 0.05 15 0.3 7.90 (46.3%)
Mar 20 22.00 0.60 232 0.3 4.90 (28.7%)

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