VIXY Dividend Type Payments

PROSHARES VIX SHORT-TERM FUTUR dividend

Although VIXY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES VIX SHORT-TERM FUTUR to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:10 AM ET):

PROSHARES VIX SHORT-TERM FUTUR (VIXY)
Bid Ask Last Change Volume P/E Market Cap
31.21 31.22 31.20 +2.76 822K - 1.1B

VIXY Dividend-Like Income Using Covered Calls

With VIXY at 31.20, 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% 0.94 0.3
5% 1.56 0.4
10% 3.12 0.9

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 VIXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 41.00 0.10 4 2.5 9.78 (31.3%)
Nov 2 40.00 0.40 11 3.6 8.78 (28.1%)
5% Yield On VIXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 41.00 0.10 4 2.5 9.78 (31.3%)
Nov 2 40.00 0.40 11 3.6 8.78 (28.1%)
10% Yield On VIXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 41.00 0.10 4 2.5 9.78 (31.3%)
Nov 2 40.00 0.40 11 3.6 8.78 (28.1%)

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