UCC Dividend Type Payments
Although UCC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra Consumer Discretionary 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 Consumer Discretionary (UCC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 44.71 | 47.91 | 46.79 | +1.56 | 4K | - | 0.0B |
UCC Dividend-Like Income Using Covered Calls
With UCC at 46.79, 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% | 1.40 | 0.4 |
| 5% | 2.34 | 0.6 |
| 10% | 4.68 | 1.3 |
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 UCC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 48.00 | 0.80 | 29 | 2.8 | 0.09 (0.2%) | |
| Jan 16 | 48.00 | 1.65 | 57 | 2.9 | 0.09 (0.2%) | |
| 5% Yield On UCC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 48.00 | 0.80 | 29 | 2.8 | 0.09 (0.2%) | |
| Jan 16 | 48.00 | 1.65 | 57 | 2.9 | 0.09 (0.2%) | |
| 10% Yield On UCC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 48.00 | 0.80 | 29 | 2.8 | 0.09 (0.2%) | |
| Jan 16 | 48.00 | 1.65 | 57 | 2.9 | 0.09 (0.2%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | RZLT dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | IMNM dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | VTYX dividend | |
| 4. | IBIT dividend | 9. | GLD dividend | 4. | JANX dividend | |
| 5. | QQQ dividend | 10. | NFLX dividend | 5. | CIFR dividend | |
Want more examples? UBT Dividend | UCIB Dividend
