TBF Dividend Type Payments
Although TBF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Short 20+ Year Treasury 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 20+ Year Treasury (TBF) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
23.03 | 23.32 | 23.14 | +0.11 | 212K | - | 0.2B |
TBF Dividend-Like Income Using Covered Calls
With TBF at 23.14, 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% | 0.69 | 0.2 |
5% | 1.16 | 0.3 |
10% | 2.31 | 0.6 |
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 TBF Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 24.00 | 0.20 | 36 | 0.6 | 0.68 (2.9%) | |
Dec 20 | 24.00 | 0.40 | 71 | 0.6 | 0.68 (2.9%) |
5% Yield On TBF Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 24.00 | 0.20 | 36 | 0.6 | 0.68 (2.9%) | |
Dec 20 | 24.00 | 0.40 | 71 | 0.6 | 0.68 (2.9%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | DJT dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | CPRI dividend | |
3. | FXI dividend | 8. | TSLA dividend | 3. | WOLF dividend | |
4. | SPY dividend | 9. | SMCI dividend | 4. | ARDX dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | SAVA dividend |
Want more examples? TBBK Dividend | TBI Dividend