SYF, which I hold a bear call spread on, goes goes ex-dividend on Wednesday. If my options were to be assigned, I would owe the dividend on the shares on the short options that would be transferred to my account.
I decided to hold the options through the ex-dividend date. The upper short contracts are in the money, although only slightly, and the dividend yield is low, at 13 cents per share, or 1.87%. Paying to exit would cost about as much as exiting the position, so I shall stand pat and take my chances.
In share trades today,
I entered three small-lot positions:
| sym | shares | entry date | exit date | entry price per share | exit price per share | result $ | result % | annual rate | days held | tactic |
| AXAS | 76 | 8/9/2016 | 1.32 | earns | ||||||
| RYI | 7 | 8/9/2016 | 14.28 | earns | ||||||
| SN | 13 | 8/9/2016 | 7.80 | earns |
I exited five positions, including a late exit from PKY, whose trend had turned downward:
| sym | shares | entry date | exit date | entry price per share | exit price per share | result $ | result % | annual rate | days held | tactic |
| CLR | 2 | 8/3/2016 | 8/9/2016 | 42.99 | 44.85 | 1.86 | 4.15% | 252% | 6 | earns |
| EVEP | 20 | 8/8/2016 | 8/9/2016 | 2.52 | 2.41 | -0.11 | -4.56% | -1666% | 1 | earns |
| PKY | 3 | 8/8/2016 | 8/9/2016 | 17.10 | 16.89 | -0.21 | -1.24% | -453.82% | 1 | earns |
| REI | 5 | 8/8/2016 | 8/9/2016 | 9.43 | 8.75 | -0.68 | -7.77% | -2837% | 1 | earns |
| RSPP | 2 | 8/8/2016 | 8/9/2016 | 39.04 | 38.44 | -0.60 | -1.56% | -570% | 1 | earns |
By Tim Bovee, Portland, Oregon, Aug. 9, 2016
by Spencer Jakab |
Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.
Small Lots: A new strategy discusses the thinking behind the analysis that identified these trades and can be read here. The symbols noted in this post are intended fortrading on a commission-free platform such as Robinhood Financial.
I can be reached via comments on Private Trader posts or by email at datnillc@gmail.com.
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Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
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