UBT Dividend Type Payments

Although UBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra 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 Tue 11:05 AM ET):

ProShares Ultra 20+ Year Treasury (UBT)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
17.87	17.90	17.86	-0.01	64K	-	0.0B

UBT Dividend-Like Income Using Covered Calls

With UBT at 17.86, 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%	0.54	0.1
5%	0.89	0.2
10%	1.79	0.5

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 UBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 21	18.00	0.35	39	0.9	0.10 (0.6%)
Jan 16	18.00	0.55	95	0.6	0.10 (0.6%)

5% Yield On UBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 21	18.00	0.35	39	0.9	0.10 (0.6%)
Jan 16	18.00	0.55	95	0.6	0.10 (0.6%)

10% Yield On UBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 21	18.00	0.35	39	0.9	0.10 (0.6%)
Jan 16	18.00	0.55	95	0.6	0.10 (0.6%)

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Want more examples? UBSI Dividend | UCC Dividend