ZSL Dividend Type Payments

Although ZSL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT SILVER to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

PROSHARES ULTRA-SHORT SILVER (ZSL)
Bid Ask Last Change Volume P/E Market Cap
41.56 42.19 42.02 +0.47 10K - 0.2B

ZSL Dividend-Like Income Using Covered Calls

With ZSL at 42.02, 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% 1.26 0.3
5% 2.10 0.6
10% 4.20 1.2

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 ZSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 48.00 0.15 30 0.5 5.81 (13.8%)
Dec 21 51.00 0.25 65 0.4 8.81 (21.0%)
5% Yield On ZSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 47.00 0.25 30 0.8 4.81 (11.4%)
Dec 21 49.00 0.40 65 0.6 6.81 (16.2%)
10% Yield On ZSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 46.00 0.35 30 1.2 3.81 (9.1%)
Dec 21 46.00 0.80 65 1.2 3.81 (9.1%)

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Want more examples? ZS Dividend | ZTO Dividend