SDP Dividend Type Payments
Although SDP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort Utilities to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:20 AM ET):
| ProShares UltraShort Utilities (SDP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 14.21 | 14.24 | 14.26 | -0.23 | 1K | - | 0.0B |
SDP Dividend-Like Income Using Covered Calls
With SDP at 14.26, 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% | 0.43 | 0.1 |
| 5% | 0.71 | 0.2 |
| 10% | 1.43 | 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:
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | TSLA dividend | 1. | COGT dividend | |
| 2. | NVDA dividend | 7. | IWM dividend | 2. | RUN dividend | |
| 3. | SPY dividend | 8. | FXI dividend | 3. | ALT dividend | |
| 4. | GLD dividend | 9. | AAPL dividend | 4. | APLD dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | IONQ dividend | |
Want more examples? SDOW Dividend | SDRL Dividend
