VXX Dividend Type Payments

Although VXX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IPATH S&P 500 VIX ST FUTURES E to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

IPATH S&P 500 VIX ST FUTURES E (VXX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
34.66	34.69	34.51	+0.49	65.3M	-	0.0B

VXX Dividend-Like Income Using Covered Calls

With VXX at 34.51, 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%	1.04	0.3
5%	1.73	0.5
10%	3.45	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 VXX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 19	68.00	0.02	5	0.4	33.31 (96.5%)
Oct 26	76.00	0.07	12	0.6	41.31 (119.7%)

5% Yield On VXX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 19	61.00	0.03	5	0.6	26.31 (76.2%)
Oct 26	76.00	0.07	12	0.6	41.31 (119.7%)

10% Yield On VXX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 19	57.00	0.06	5	1.2	22.31 (64.6%)
Oct 26	67.00	0.12	12	1.0	32.31 (93.6%)

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Top 10 Open Interest For Oct 19 Expiration				Top 5 High Yield
1.	SPY dividend	6.	MU dividend	1.	CRON dividend
2.	SPX dividend	7.	FXI dividend	2.	UVXY dividend
3.	EEM dividend	8.	BAC dividend	3.	NIO dividend
4.	QQQ dividend	9.	AMD dividend	4.	NFLX dividend
5.	PBR dividend	10.	XLF dividend	5.	AMRN dividend

Want more examples? VXUS Dividend | VXXB Dividend