My Sep short calls will expire, worthless, today. My Oct short calls are valueless. I'll just have to just have to wait for them to expire. I'm always glad to create new options for people to buy. Yet, I have no idea what they were thinking. I know what the sellers were thinking: Free money.
It doesn't seem to be working out. Perhaps the market is anticipating the reduced earnings from the reduced production from the poorly managed switch over. It could be an opportunity for some people.
My short, SEP 11 puts will expire, worthless today. When I sold them I thought I was taking a chance, but then it jumped up. I'm not confident that it is worth $13 a share. I'll be making money elsewhere for a while.
The X-dividend date is September 29, On that date you would buy X (without) the dividend.
On that date all open orders, except DNRs, will be reduced by the dividend amount. (30 cents.)
Then the price will be driven down another 30 cents or more. Last quarter, NLY went down 75 cents.
I think that the excess drop is the result of a combination of a lack of interest in the stock and the panic of the uninformed. Last quarter I was able to buy at 11 and enter into a hedge (Selling calls and Buying puts) All my shares will probably sell in January at 11 for a nominal net gain. I'll get 2 dividend payments and then I'm out. Unfortunately, there are no $11 leaps.
As i said 30 cents usually on a Thursday:
The Board of Directors of Annaly Capital Management, Inc. (NLY) declared the third quarter 2014 common stock cash dividend of $0.30 per common share. This dividend is payable October 31, 2014, to common shareholders of record on October 1, 2014. The ex-dividend date is September 29, 2014.
Apparently, your calculations are not meaningful. (See the price drop.) The dividend is not a function of the earnings. (No wonder you are confused.) The price tends to drop as people become anxious about the upcoming dividend announcement. (They are not able to duplicate your calculations.)
So far, you have lost no money. Perhaps a B rated bond at 5% would suit you. Otherwise, sell 15.5 puts. The OCT 10 are selling at 0.22.
I closed my short position at 82.5. I shorted at 84 to cover my 82.5 puts. I'll wait for the puts to expire, worthless, tomorrow.
And, you are not selling calls or buying puts? All air. No action. No confidence in yourself.
The straddle that I will be entering the day before the announcements will make money, big time.
It makes me feel better about my short puts in the oil patch. They will expire, worthless, of Friday. So will my TSLA puts. Oil goes up and down. At this time, the price of oil is not a TSLA driver.
I started selling 12.5 puts as soon as the earnings came out. My Sept puts have a good chance of expiring, worthless. Otherwise, I will be assigned at 12.5. If so, I shouldn't have any trouble selling them. We seem to have support at 12.5. I'm selling puts at that strike price for fun and profit. Bulls, consider it.
I usually let them expire, worthless. You don't know the shrike price, number of contracts or the tax bracket. This week I chose to sell at $6 per contract. I expect the price to go up. My software does that, too. I open my eyes and look at the current price.
Usually on a Thursday. Probably 30 little pennies. That's fine with me. My shares are hedged at 11. I can't possibly loose money.
It is time to sell your weekly puts. The media and analysts are through manipulating the price down. That was some quick, easy money for those who were able to jump in. Next profit date: Friday.
The impact of the news is waning. The financial benefit that made the news will keep the price up. If it goes down to 12, I'm selling puts.