This is the normal post-X drop timed with the fool. I just covered my short position this morning. (My 11.5 short calls got assigned on Friday.) I'm still comfortable with all my 11.5 short puts. If the price drops below 11, I'll be selling $11 puts. Look at last quarter's price action.
You actually read M Fool? What did it say. Don't forget to do a virus scan.
I just got through selling puts for each 11.50 strike price through Aug 1. They will probably expire, worthless. If assigned, I'll just put them up for sale at 11.55. It is just something to do while waiting for the divvy.
Post X buying is a well known strategy. It is good if the dividend is clearly sustainable. Often times, the price continues to drop a bit. It doesn't seem to be happening today.
Therefore, you was in the positive yesterday without the dividend. Why didn't you sell then? Did you include income taxes in your break even calculation? This year, you will be able to claim a capital loss from your sale. Just think, you could have bought a CD.
It sure put on the breaks today. I was compelled to sell $13 puts this morning. It looks like I did the right thing. There is nothing like making a profit on the delta, dP/dt.
I'm making money. How about you? You've never bought or sold. What are you doing here? On Tuesday morning, I sold calls. I'm just making an extra dollar of realized gain per share on the spike, with weekly options. Worst case: I'll be forced to sell at a $42.5 profit. I still recommend selling before the earnings.
I had already sold Sep $35 covered Calls. I've put in an order to sell Dec $35 naked calls. The Sep calls will surely expire, worthless. The Dec calls will probably do the same. That will be over $3 per share that I didn't have before. Easy money for long-term holders. The worst case is that I could be forced to sell at $35.
It is clear that the tax win has set a new base value for BYD, $12 more or less. The earnings will be coming out near the end of Jul. The expectations for a good or bad report should start driving the price. It should be easy to beat last quarter's EPS, -0.06. Beating last years 2'nd quarter's EPS, 0.13, will be difficult. They won't get that from just on-line gambling. They need to be able to make money at all their locations. There's where my doubts lay.