SSO Dividend Type Payments

ProShares Ultra S&P500 dividend

Although SSO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra 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 Ultra S&P500 (SSO)
Bid Ask Last Change Volume P/E Market Cap
113.21 113.23 112.99 -0.10 5.0M - 7.6B

SSO Dividend-Like Income Using Covered Calls

With SSO at 112.99, 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% 3.39 0.9
5% 5.65 1.5
10% 11.30 3.1

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 SSO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 113.00 2.90 22 12.1 0.00 (0.0%)
Dec 12 113.00 2.25 29 7.0 0.00 (0.0%)
5% Yield On SSO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 113.00 2.90 22 12.1 0.00 (0.0%)
Dec 12 113.00 2.25 29 7.0 0.00 (0.0%)
10% Yield On SSO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 113.00 2.90 22 12.1 0.00 (0.0%)
Dec 12 113.00 2.25 29 7.0 0.00 (0.0%)

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Want more examples? SSNC Dividend | SSP Dividend