UBT Dividend Type Payments

ProShares Ultra 20+ Year Treasury dividend

Although UBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra 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 Wed 4:16 PM ET):

ProShares Ultra 20+ Year Treasury (UBT)
Bid Ask Last Change Volume P/E Market Cap
16.05 16.38 16.38 +0.05 108K - 0.0B

UBT Dividend-Like Income Using Covered Calls

With UBT at 16.38, 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% 0.49 0.1
5% 0.82 0.2
10% 1.64 0.4

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 UBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 18.00 0.50 100 0.5 1.62 (9.9%)
Feb 21 18.00 0.10 45 0.2 1.62 (9.9%)
5% Yield On UBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 18.00 0.50 100 0.5 1.62 (9.9%)
10% Yield On UBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 18.00 0.50 100 0.5 1.62 (9.9%)

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