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 |
10.89 | 10.90 | 10.89 | +0.02 | 25.0M | - | 1.4B |
SH Dividend-Like Income Using Covered Calls
With SH at 10.89, 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% | 0.33 | 0.1 |
5% | 0.54 | 0.1 |
10% | 1.09 | 0.3 |
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 | |
Nov 15 | 11.00 | 0.20 | 50 | 0.4 | 0.10 (0.9%) | |
Oct 18 | 11.00 | 0.10 | 22 | 0.5 | 0.10 (0.9%) |
5% Yield On SH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 11.00 | 0.20 | 50 | 0.4 | 0.10 (0.9%) | |
Oct 18 | 11.00 | 0.10 | 22 | 0.5 | 0.10 (0.9%) |
10% Yield On SH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 11.00 | 0.20 | 50 | 0.4 | 0.10 (0.9%) | |
Oct 18 | 11.00 | 0.10 | 22 | 0.5 | 0.10 (0.9%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | QQQ dividend | 1. | ASTS dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | APLD dividend | |
3. | FXI dividend | 8. | HYG dividend | 3. | HUT dividend | |
4. | SPY dividend | 9. | TLT dividend | 4. | CLSK dividend | |
5. | EEM dividend | 10. | GLD dividend | 5. | CPRI dividend |
Want more examples? SGU Dividend | SHAK Dividend