SDS Dividend Type Payments

Although SDS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort S&P500 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:00 AM ET):

ProShares UltraShort S&P500 (SDS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
19.86	19.87	19.86	-0.28	2.8M	-	0.5B

SDS Dividend-Like Income Using Covered Calls

With SDS at 19.86, 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%	0.60	0.2
5%	0.99	0.3
10%	1.99	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 SDS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	20.00	0.50	30	1.7	0.13 (0.7%)
Jun 20	20.00	1.25	184	0.7	0.13 (0.7%)

5% Yield On SDS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	20.00	0.50	30	1.7	0.13 (0.7%)
Jun 20	20.00	1.25	184	0.7	0.13 (0.7%)

10% Yield On SDS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	20.00	0.50	30	1.7	0.13 (0.7%)
Jun 20	20.00	1.25	184	0.7	0.13 (0.7%)

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Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	EEM dividend	1.	NMRA dividend
2.	SPY dividend	7.	IWM dividend	2.	FDX dividend
3.	XLF dividend	8.	TLT dividend	3.	WULF dividend
4.	QQQ dividend	9.	TSLA dividend	4.	SERV dividend
5.	FXI dividend	10.	KWEB dividend	5.	ALT dividend

Want more examples? SDRL Dividend | SDY Dividend