SCO Dividend Type Payments

Although SCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort Bloomberg Crude Oil to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:20 AM ET):

ProShares UltraShort Bloomberg Crude Oil (SCO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
17.98	17.99	17.99	+0.04	765K	-	0.1B

SCO Dividend-Like Income Using Covered Calls

With SCO at 17.99, 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%	0.54	0.1
5%	0.90	0.2
10%	1.80	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 SCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	18.00	1.05	32	3.3	0.01 (0.1%)
Jan 17	18.00	1.55	60	2.6	0.01 (0.1%)

5% Yield On SCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	18.00	1.05	32	3.3	0.01 (0.1%)
Jan 17	18.00	1.55	60	2.6	0.01 (0.1%)

10% Yield On SCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	18.00	1.05	32	3.3	0.01 (0.1%)
Jan 17	18.00	1.55	60	2.6	0.01 (0.1%)

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Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	QQQ dividend	1.	SAVA dividend
2.	SPY dividend	7.	XLF dividend	2.	HUT dividend
3.	EEM dividend	8.	KWEB dividend	3.	CRVS dividend
4.	FXI dividend	9.	TLT dividend	4.	RCAT dividend
5.	IWM dividend	10.	AAPL dividend	5.	ANAB dividend

Want more examples? SCM Dividend | SCS Dividend