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
41.51	41.51	41.48	-0.25	3.6M	-	1.4B

SH Dividend-Like Income Using Covered Calls

With SH at 41.48, 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%	1.24	0.3
5%	2.07	0.6
10%	4.15	1.1

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
Aug 15	42.00	1.05	92	1.1	0.49 (1.2%)
Jul 18	42.00	0.75	64	1.2	0.49 (1.2%)

5% Yield On SH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	42.00	1.05	92	1.1	0.49 (1.2%)
Jul 18	42.00	0.75	64	1.2	0.49 (1.2%)

10% Yield On SH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	42.00	1.05	92	1.1	0.49 (1.2%)
Jul 18	42.00	0.75	64	1.2	0.49 (1.2%)

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Want more examples? SGU Dividend | SHAK Dividend