How to find dividend capture opportunities

This is a quick post on how I find dividend capture opportunities in the stock market.  As part of my weekly process I like to look for dividend stocks that distribute dividend in the next month (up to month and a half usually). I put them in a watch list and then look for a buying opportunity.

Here is a quick gif on the process:

Dividend Capture - Option Samurai
Dividend Capture – With Option Samurai

As you can see, it’s really easy: I choose the pre-defined screen (dividend capture) and then filter the stock score some more.

If you want to scan manually for dividend capture opportunities, The parameters are:

  1. At the money – out the money calls.
  2. Expiration date up to a month and a half from today.
  3. Stock score 8-10 (really good stocks)
  4. annualized return – 12.5% or more
  5. Open interest – 1000 or more
  6. Earning release after expiration
  7. dividends  before expiration

After I get the list, I take out any sector or stock i don’t like (or have enogh exposer to) and if the implied volatility is too low or dividend yield is too low I will skip that as well.

Here is the starting list for 4-Jan-2015:

Dividend capture - Watchlist
Dividend capture – Watchlist 5-1-2015

 

Feel free to try it for yourself in our demo.

or sign up for unlimited access.

 

 

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