SH Dividend Type Payments
Although SH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Short S&P500 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 Short S&P500 (SH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 36.28 | 36.29 | 36.27 | -0.09 | 11.3M | - | 1.2B |
SH Dividend-Like Income Using Covered Calls
With SH at 36.27, 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% | 1.09 | 0.3 |
| 5% | 1.81 | 0.5 |
| 10% | 3.63 | 1.0 |
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 SH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 37.00 | 0.55 | 50 | 1.1 | 0.71 (2.0%) | |
| Nov 21 | 37.00 | 0.25 | 22 | 1.1 | 0.71 (2.0%) | |
| 5% Yield On SH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 37.00 | 0.55 | 50 | 1.1 | 0.71 (2.0%) | |
| Nov 21 | 37.00 | 0.25 | 22 | 1.1 | 0.71 (2.0%) | |
| 10% Yield On SH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 37.00 | 0.55 | 50 | 1.1 | 0.71 (2.0%) | |
| Nov 21 | 37.00 | 0.25 | 22 | 1.1 | 0.71 (2.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | GHRS dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | IREN dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | SRPT dividend | |
| 4. | SLV dividend | 9. | EEM dividend | 4. | UPST dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | HUT dividend | |
Want more examples? SGU Dividend | SHAK Dividend
