UPRO Dividend Type Payments
Although UPRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraPro S&P 500 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| ProShares UltraPro S&P 500 (UPRO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 88.43 |
88.47 |
88.54 |
-0.20 |
6.5M |
- |
5.8B |
UPRO Dividend-Like Income Using Covered Calls
With UPRO at 88.54, 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% |
2.66 |
0.7 |
| 5% |
4.43 |
1.2 |
| 10% |
8.85 |
2.4 |
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 UPRO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 27 |
88.50 |
2.10 |
9 |
23.3 |
0.03 (0.0%) |
| Jan 3 |
100.00 |
0.20 |
16 |
1.3 |
11.53 (13.0%) |
| 5% Yield On UPRO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 27 |
88.50 |
2.10 |
9 |
23.3 |
0.03 (0.0%) |
| Jan 3 |
100.00 |
0.20 |
16 |
1.3 |
11.53 (13.0%) |
| 10% Yield On UPRO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 27 |
88.50 |
2.10 |
9 |
23.3 |
0.03 (0.0%) |
| Jan 3 |
88.50 |
2.55 |
16 |
15.9 |
0.03 (0.0%) |
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