USD Dividend Type Payments
Although USD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra Semiconductors 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 Ultra Semiconductors (USD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 64.23 | 64.68 | 64.52 | +2.84 | 996K | - | 0.9B |
USD Dividend-Like Income Using Covered Calls
With USD at 64.52, 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% | 1.94 | 0.5 |
| 5% | 3.23 | 0.9 |
| 10% | 6.45 | 1.8 |
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 USD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 14.20 | 239 | 5.9 | 0.32 (0.5%) | |
| May 16 | 100.00 | 3.70 | 148 | 2.5 | 35.32 (54.7%) | |
| 5% Yield On USD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 14.20 | 239 | 5.9 | 0.32 (0.5%) | |
| May 16 | 100.00 | 3.70 | 148 | 2.5 | 35.32 (54.7%) | |
| 10% Yield On USD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 14.20 | 239 | 5.9 | 0.32 (0.5%) | |
| May 16 | 100.00 | 3.70 | 148 | 2.5 | 35.32 (54.7%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | RGTI dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | NMRA dividend | |
| 3. | AAPL dividend | 8. | TSLA dividend | 3. | HUMA dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | DLO dividend | |
| 5. | XLF dividend | 10. | TLT dividend | 5. | MARA dividend | |
Want more examples? USCI Dividend | USDU Dividend
