ProShares Ultra Semiconductors (USD) Covered Calls
The ProShares Ultra Semiconductors (USD) is a leveraged exchange-traded fund that seeks daily investment results corresponding to two times (2x) the daily performance of the Dow Jones U.S. Semiconductors Index. It invests in financial instruments, including derivatives, to achieve its leveraged objective. Because it resets its leverage daily, this fund is designed as a short-term tactical tool for sophisticated investors rather than a long-term buy-and-hold investment.
You can sell covered calls on ProShares Ultra Semiconductors to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for USD (prices last updated Mon 4:16 PM ET):
| ProShares Ultra Semiconductors (USD) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 43.19 | -2.52 | 43.06 | 43.16 | 1.1M | - | 1.3 |
| Covered Calls For ProShares Ultra Semiconductors (USD) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 45 | 2.60 | 40.56 | 6.4% | 123% | |
| May 15 | 43 | 4.50 | 38.66 | 11.2% | 87.0% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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Core Business and Products
The ProShares Ultra Semiconductors (USD) is a leveraged ETF providing 2x daily long exposure to the U.S. semiconductor industry. By tracking the Dow Jones U.S. Semiconductors Index, the fund allows traders to magnify their exposure to semiconductor stock price movements using a single ticker. Its primary goal is to deliver twice the daily performance of its underlying index, making it a high-beta instrument for those monitoring daily industry trends.
Due to the nature of daily leverage resets, the fund is intended for short-term tactical trading. When held for periods longer than a single day, the effects of compounding can cause the fund's performance to diverge significantly from the index’s cumulative return. It is a non-diversified fund that often holds a concentrated portfolio of top semiconductor companies and derivative contracts.
Competitive Landscape
USD operates within the highly active leveraged semiconductor trading space. It competes with other bull-focused leveraged ETFs such as the Direxion Daily Semiconductor Bull 3X Shares, which offers even higher leverage, and the ProShares UltraPro QQQ, which provides leveraged exposure to a broader technology index. Because USD is liquid and optionable, it is frequently used by active traders alongside individual industry leaders like NVIDIA, Broadcom, and Micron Technology.
Strategic Outlook and Innovation
The strategic outlook for USD depends heavily on the momentum and volatility of the semiconductor sector. As a leveraged product, it is specifically designed to perform in environments with strong directional trends. Innovation in this space focuses on providing efficient access to geared exposure, allowing investors to hedge or amplify their existing positions in the semiconductor market through a transparent, exchange-traded vehicle.
Investors utilizing this fund should maintain a disciplined approach, as the volatility inherent in both semiconductor stocks and leveraged instruments can lead to rapid performance shifts. It remains a primary choice for those seeking 2x magnified exposure to the industry without utilizing traditional margin accounts.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | BE covered calls | |
| 3. | NVDA covered calls | 8. | TLT covered calls | 3. | SGML covered calls | |
| 4. | KWEB covered calls | 9. | HYG covered calls | 4. | ONDS covered calls | |
| 5. | SPY covered calls | 10. | EWZ covered calls | 5. | NKE covered calls | |
Want more examples? USCI Covered Calls | USDU Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
