Equity option expiration dates
Next CBOE Weeklys listings and expiration The expiration dates for 2011 / 2012 Equity options are: [table id= 31 /] Source: OCC and CBOE option expiration calendars
Covered Calls
SPY dividend capture strategies that don’t work…
Some SPY dividend capture strategies I don’t recommend: 1. Sell SPY short right before closing the day before ex-dividend Rationale: Securities tend to drop by about the dividend amount when trading begins (pre-open trading) Problem: The buyer that bought the stock from you deserves the dividend and the loaner that loaned you the stock you sold (probably unknowingly), deserves the dividend too. Two dividends, one …
Dividend capture strategies—three approaches to skip
The dividend capture approaches that I describe below do work some of the time. My experience is that they expose the investor to excessive risk relative to the payoff–or they don’t pay off often enough. Buy and hold dividend paying stocks If you love the stock, this is a fine strategy, but then it really isn’t a dividend capture strategy. The dividend is just a …
Covered call on SDS
Did covered calls on SDS (double short S&P 500). Bought SDS at 35.86, sold March 34 calls at 2.37 for a net investment of 33.52. Extrinsic value is .48, so the max profit potential is .48/33.52 = 1.4%
Investing ideas for March: Oil, SPY, Dividend capture, VIX
Looking forward to some possibilities in March: Oil (EFT USO) — I’m bearish right now at 38. I will probably jump back in with covered calls if it drops to the 36 range. . SPY — I’m bearish now. Will probably jump back in with covered calls if SPY drops to around 106. . Monday March 1 — Ex-dividend date for most ETFs with monthly distributions …
