Hey Guys,
A lot of my positions are up this morning. Everything in my account is green at the time I'm writing this, except for LBTYA. I was patient earlier this week when the market pulled back a little, and that patience might pay off.
I closed both PNC and DFS this morning since they hit their deadlines. Both had a solid profit. The last 9 trades I've closed have all been for a profit, so that's a nice rebound after a turbulent few weeks there.
I picked up stock for CINF today. There was another one that set up, GSK, but the stock position was super heavy! It would have been the equivalent of holding two stock positions. I've taken plenty of heavy positions before, but this one was off the charts. I considered excluding it from my watch list, but it had options available so I wanted to be able to evaluate the options if it triggered. Those proved to be too expensive (higher than my max premium). So I passed on GSK altogether. We'll see if anything else sets up today.
The Kellogg's ex-dividend date is going to overlap with my current position. As long as I'm holding the position at the end of trading today and overnight, then I will get the dividend issued to me. The price of the stock is expected to jump down by the amount of the dividend overnight. I am ok with that. Part of the reason is because in back tests, the win rate of trades that overlapped ex-dividend dates was about the same as that of trades that did not. So in other words, even when you ignore the dividend and just look at the stock price, those trades still performed similarly in back tests to the typical non-dividend trades. So in some cases, the dividend may have ended up being like a bonus. Let's see if that's how it shakes out for Kellogg's.