TWM Dividend Type Payments
Although TWM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort Russell2000 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:15 PM ET):
| ProShares UltraShort Russell2000 (TWM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 62.15 | 62.21 | 62.16 | +3.30 | 90K | - | 0.1B |
TWM Dividend-Like Income Using Covered Calls
With TWM at 62.16, 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% | 1.86 | 0.5 |
| 5% | 3.11 | 0.9 |
| 10% | 6.22 | 1.7 |
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 TWM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 62.00 | 4.70 | 26 | 17.3 | 0.00 (0.0%) | |
| Oct 17 | 62.00 | 8.80 | 180 | 4.8 | 0.00 (0.0%) | |
| 5% Yield On TWM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 62.00 | 4.70 | 26 | 17.3 | 0.00 (0.0%) | |
| Oct 17 | 62.00 | 8.80 | 180 | 4.8 | 0.00 (0.0%) | |
| 10% Yield On TWM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 62.00 | 4.70 | 26 | 17.3 | 0.00 (0.0%) | |
| Oct 17 | 62.00 | 8.80 | 180 | 4.8 | 0.00 (0.0%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | BHVN dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | APLD dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | STLA dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | HOOD dividend | |
| 5. | QQQ dividend | 10. | KWEB dividend | 5. | UPST dividend | |
Want more examples? TWLO Dividend | TWO Dividend
