After setting the lows at about 1850~ few weeks ago, the market continued to move up in a positive week. There is still fear in the markets, as the implied volatilities are still high. It is hard to know if this is a bull trap or not, but this doesn’t look like it is a good time to enter the market – A better time would be after the market had a chance to retrace. It is a good opportunity to initiate a short position (if you believe the markets are headed down in the long run) with a tight stop.
I used the high IV and relative rapid increase in price to hedge my position and sell OTM calls and buy some put calendar spreads for protection.
This week the dividend capture list is short since it is relatively not a good time to enter into many positions.
Here is the current market sentiment:
For our dividend capture strategy,we look for good companies with over 3% yield. The companies distribute dividends in the next 10-30 days. You can follow us on Twitter, where we often publish more trade ideas.
The dividend capture watch-list:
(4 Results. Charts are visible on site and not in email)
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