VXX Dividend Type Payments
Although VXX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iPath Series B S&P 500 VIX Short-Term Futures ETN 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):
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
53.13 | 53.41 | 53.00 | -2.09 | 4.1M | - | 0.0B |
VXX Dividend-Like Income Using Covered Calls
With VXX at 53.00, 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% | 1.59 | 0.4 |
5% | 2.65 | 0.7 |
10% | 5.30 | 1.5 |
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 VXX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 100.00 | 0.18 | 29 | 0.6 | 46.59 (87.9%) | |
Nov 8 | 53.50 | 3.70 | 36 | 10.3 | 0.09 (0.2%) |
5% Yield On VXX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 110.00 | 0.27 | 29 | 0.9 | 56.59 (106.8%) | |
Nov 8 | 53.50 | 3.70 | 36 | 10.3 | 0.09 (0.2%) |
10% Yield On VXX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 53.50 | 3.50 | 29 | 12.1 | 0.09 (0.2%) | |
Nov 8 | 53.50 | 3.70 | 36 | 10.3 | 0.09 (0.2%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend |
Want more examples? VXUS Dividend | VYGR Dividend