SCO Dividend Type Payments

Although SCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort Bloomberg Crude Oil to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:15 PM ET):

ProShares UltraShort Bloomberg Crude Oil (SCO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
17.86	17.87	17.88	-0.22	1.7M	-	0.1B

SCO Dividend-Like Income Using Covered Calls

With SCO at 17.88, 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%	0.54	0.1
5%	0.89	0.2
10%	1.79	0.5

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 SCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	18.00	1.45	51	2.8	0.13 (0.7%)
Oct 17	18.00	1.95	114	1.7	0.13 (0.7%)

5% Yield On SCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	18.00	1.45	51	2.8	0.13 (0.7%)
Oct 17	18.00	1.95	114	1.7	0.13 (0.7%)

10% Yield On SCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	18.00	1.45	51	2.8	0.13 (0.7%)
Oct 17	18.00	1.95	114	1.7	0.13 (0.7%)

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5.	TLT dividend	10.	CLSK dividend	5.	ENPH dividend

Want more examples? SCM Dividend | SCS Dividend