Dividend Capture Strategies

In trying to capture dividends there is no free lunch. In fact, since Wall street is involved, the best you can hope for is an affordable lunch. I have looked at, and tried quite a few approaches—most of which don’t work, but I have found one approach that does work with some ETFs. Ironically you don’t actually collect the dividend most of the time, but …

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Betting on the bear

I put a bear spread into place on SPY,  selling  April 100 calls at 8.10 and buying April 108 calls at 1.30 — net credit of 6.80.   Worst case loss is 1.2 per call pair, best case profit is 6.8 per call pair.