07-24-2021, 07:27 PM
(07-24-2021, 06:08 PM)NilesMike Wrote:Just to be clear you are playing a few days of momentum if the stock completely recovers on ex-Div day?(04-28-2021, 07:02 AM)NilesMike Wrote: A little ,more laborious but works better IMO this way. Look at ex div day on stock of your choice, stock will usually fall. Wait for a close above the high day before ex div date. Buy stock, hold for a week, usually better pop than than what the dividend pays.
It is easy to forget watching and get distracted, don't ask how I know-LOL
Update/refinement;
1)I have added a 200SMA to my chart and only take the trade is above SMA
2) If ex-dividend day closes above the prior day's high, enter long the next day and hold for 2X dividend payout.
Nearly 100% success rate on this strat with longest holding time about 10 days.
(RE: MVO example referenced above, wait for a close above 4/13 High (5.70) on 5/14, enter next open and by end of week, you had nearly 3X dividend payout.)
Looking to see if I can lever it up a bit more with options, but I'm afraid it will limit choice of tickers because of liquidity constraints.