DIA Dividend Capture–close out


Updated: Feb 21st, 2010 | Vance Harwood

My DIA dividend capture position was assigned last night as expected, for a net profit of $0.27 per share.  Since my DIA position was called before the dividend was distributed I won’t actually get the dividend (which I am estimating to be $0.25), but my net profit is slightly more with considerably less risk than just buying DIA and holding to ex-dividend.   The image below includes today’s open interest on the DIA options as the far right column.  The Feb 99 calls went from an open interest of around 2400 to 38 overnight, so about 98.5% of the open calls were assigned.  The options up through the 102 strike were mostly cleared out.

DIA call option chain 19-Feb-2010, Open Interest on right, click to enlarge

DIA call option chain 19-Feb-2010, Open Interest on right, click to enlarge

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Sunday, February 21st, 2010 | Vance Harwood
  • dividendium

    Thanks for posting this trade and the results. Interesting to see how it worked out.

    If you do lots of these short-term trades you might consider opening an account with Interactive Brokers. They do $1 stock commissions and $0.25 per option (no commission). But they have a $10/month minimum.

    Also you might take a look at one of the services on my website that finds covered call dividend capture trades.
    http://www.dividendium.com/PremiumServices_Infl