TBT Dividend Type Payments

Although TBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort Lehman 20 Year Treasury 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 UltraShort Lehman 20 Year Treasury (TBT)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
36.72	37.00	36.85	+0.52	556K	-	0.7B

TBT Dividend-Like Income Using Covered Calls

With TBT at 36.85, 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%	1.11	0.3
5%	1.84	0.5
10%	3.69	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 TBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	37.00	0.95	22	4.3	0.00 (0.0%)
Jun 20	37.00	2.55	176	1.4	0.00 (0.0%)

5% Yield On TBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	37.00	0.95	22	4.3	0.00 (0.0%)
Jun 20	37.00	2.55	176	1.4	0.00 (0.0%)

10% Yield On TBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	37.00	0.95	22	4.3	0.00 (0.0%)
Jun 20	37.00	2.55	176	1.4	0.00 (0.0%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jan 17 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	XLF dividend	1.	NMRA dividend
2.	SLV dividend	7.	SPY dividend	2.	QBTS dividend
3.	AAPL dividend	8.	IWM dividend	3.	QUBT dividend
4.	EEM dividend	9.	TSLA dividend	4.	QS dividend
5.	INTC dividend	10.	TLT dividend	5.	JSPR dividend

Want more examples? TBPH Dividend | TBX Dividend