DIA Dividend Capture–close out

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My DIA dividend capture position was assigned last night as expected, for a net profit of $0.27 per share.  Since my DIA position was called before the dividend was distributed I won’t actually get the dividend (which I am estimating to be $0.25), but my net profit is slightly more with considerably less risk than just buying DIA and holding to ex-dividend.   The image …

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2004 Redux–into a negative trend line?

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I’m continuing with the hypothesis that there are a lot of similarities to the 2003/2004 market that might help  predict the future action of the market.   Clearly volatility is higher now than the 2003/2004 period, and the transition from upward trend line to a sideways market has been scarier–but these are scary times.  Looking back at 2004, the market went into a slightly declining …

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February VIX options expire — fear takes a bite

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February VIX options expired today.   The settlement price (ticker VRO/$VRO/^VRO) was 22.50.  The VIX index opened at 22.25.   With this settlement price I ended up losing .35 per call on my VIX spread.    Things could have been much worse–I could have lost up to 2.85 with the spread.    I certainly didn’t expect the VIX to stay up at the levels it …

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Feb 2010 DIA dividend capture

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Bought DIA at 101.17, sold-to-open Feb 99 calls at 2.44 — both with market orders, for a net debit of 98.73.    Pretty frustrating morning– tried to do buy-writes first thing today with a net debit amount, but I  never got a fill, even though I was splitting the ask/bid price or slightly more generous on the options (97 calls at that point).  I don’t …

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