SPY, said by some to be the most liquid single security in the world, goes ex-dividend four times a year. See this post for the next ex-dividend date and an estimate of the dividend amount. You must buy SPY at least by the end of market on Thursday, the day before ex-dividend, to be eligible for the dividend. Below is SPY’s dividend history over the last …
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 …
The surprising date / value / normalized volume correlation on the S&P 500 between 2004 and 2010 continues, with the 3rd of March SPY closings only differing by 3%. If 2010 continues to track 2004 then we should see an ongoing ramp in trading volume, with a 30 day moving average of around 300 million shares per day on SPY, compared to the current run rate …
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%
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 …
