SH Dividend Type Payments

ProShares Short S&P500 dividend

Although SH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Short S&P500 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:10 PM ET):

ProShares Short S&P500 (SH)
Bid Ask Last Change Volume P/E Market Cap
37.28 37.29 37.29 +0.36 5.9M - 1.2B

SH Dividend-Like Income Using Covered Calls

With SH at 37.29, 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% 1.12 0.3
5% 1.86 0.5
10% 3.73 1.0

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 SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 38.00 0.65 43 1.5 0.71 (1.9%)
Nov 21 38.00 0.30 15 2.0 0.71 (1.9%)
5% Yield On SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 38.00 0.65 43 1.5 0.71 (1.9%)
Nov 21 38.00 0.30 15 2.0 0.71 (1.9%)
10% Yield On SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 38.00 0.65 43 1.5 0.71 (1.9%)
Nov 21 38.00 0.30 15 2.0 0.71 (1.9%)

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