Accordingly, I've opened positions in GOOD and SNH.
Both have bull ratings from Zacks Investment Research and have histories of not falling sharply after dividend payments. Both go ex-dividend on Oct. 19.
GOOD pays dividends monthly with an 8.41% annual yield at today's rate and share price.
SNH pays dividends quarterly with a 7.08% annual yield at today's rate and share price.
I haven't formulated exit rules yet. For this to work I suspect that I'll need to hold a position longer than with other strategies in order to avoid whipsawing my positions because of ex-dividend price response.
See Friday's Small Lots for details of the trades.
By Tim Bovee, Portland, Oregon, Sept. 14, 2016
by Jason Kelly
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 for trading on a commission-free platform such as Robinhood Financial. See my initial post on the strategy here.
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