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 4:16 PM ET):

ProShares Short S&P500 (SH)
Bid Ask Last Change Volume P/E Market Cap
44.71 44.72 44.62 -0.91 6.7M - 1.5B

SH Dividend-Like Income Using Covered Calls

With SH at 44.62, 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% 1.34 0.4
5% 2.23 0.6
10% 4.46 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 SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 45.00 1.70 155 1.1 0.28 (0.6%)
May 16 45.00 1.05 64 1.6 0.28 (0.6%)
5% Yield On SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 45.00 1.70 155 1.1 0.28 (0.6%)
May 16 45.00 1.05 64 1.6 0.28 (0.6%)
10% Yield On SH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 45.00 1.05 64 1.6 0.28 (0.6%)
Apr 17 46.00 0.45 35 1.3 1.28 (2.9%)

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