SPXU Dividend Type Payments

Although SPXU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraPro 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 Thu 4:16 PM ET):

ProShares UltraPro Short S&P500 (SPXU)
Bid Ask Last Change Volume P/E Market Cap
13.98 13.99 14.00 -0.20 28.6M - 0.3B

SPXU Dividend-Like Income Using Covered Calls

With SPXU at 14.00, 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% 0.42 0.1
5% 0.70 0.2
10% 1.40 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:

3% Yield On SPXU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 14.00 0.30 16 1.9 0.01 (0.1%)
Oct 10 14.00 0.35 23 1.5 0.01 (0.1%)
5% Yield On SPXU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 14.00 0.30 16 1.9 0.01 (0.1%)
Oct 10 14.00 0.35 23 1.5 0.01 (0.1%)
10% Yield On SPXU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 14.00 0.30 16 1.9 0.01 (0.1%)
Oct 10 14.00 0.35 23 1.5 0.01 (0.1%)

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Want more examples? SPXT Dividend | SPXV Dividend