<p>Ok I’ll check tomorrow and see if I come up with the same numbers thanks!</p>
<p>DrGoogle…ok…</p>
<p>The dividend trade cost you the dividend minus the premium you received for selling the 168 calls. You only lost .26 times 8500. </p>
<p>Plus approximately .939 x 1000. </p>
<p>The premium above parity you received is reflected in the 168 sale price of 33.50. </p>
<p>I might have an error of around $20. $20.</p>
<p>I think that can be considered a rounding error. :)</p>
<p>Ok… i do have an error. I transposed numbers. It is small. Might be 81 bucks. I will fix it.</p>
<p>So do I owe 9500 x .939 or something else?</p>
<p>OK…
realized gain and profit are correct </p>
<p>I transposed the 90,890.59 to 90,809.59 when typing.</p>
<p>I used the correct number in the calculations.</p>
<p>I might be off by .09. </p>
<p>That is close enough. :)</p>
<p>Yes… you do owe 9500 x .939.</p>
<p>You are paying that Oct 31. </p>
<p>That’s what I thought - I don’t like that at all. X( </p>
<p>Well another day of jury tomorrow!</p>
<p>Yeah… I know… You did lose over $3,000 by not closing the trade before the ex div date.</p>
<p><a href=“http://www.nasdaq.com/symbol/spy/dividend-history”>http://www.nasdaq.com/symbol/spy/dividend-history</a></p>
<p>I don’t know if you are enjoying jury duty or not. You did make money. Hope you have a stimulating day tomorrow!</p>
<p>Ok…just to be more accurate…
you lost .939- (168 + 33.50-200.87)
or .939-.63 or .31 x 8500 shares or $2635. by not exercising the 168 calls. I kept writing that you lost .26 on the 168 calls by not closing before the ex dividend date but it was .31.</p>
<p>I was using 33.55 as the sell price of the 168 calls instead of 33.50 when figuring out what you lost by not closing the trades out before the ex div date.</p>
<p>Plus (1,000 x .939) on the 143 calls by not closing before the ex dividend date</p>
<p>Total loss by not closing before the ex dividend date is 2635 +939=$3574.</p>
<p>The pnl should be correct. The pnl doesn’t change. I used 33.50 for the 168 calls when calculating the pnl.</p>
<p>ok…that is it for this. :)</p>
<p>Sorry about the inaccuracy.</p>
<p>Thanks! For the 100 contract trade, I was hoping for a maximum gain of .8727 and for the 10 contract trade = 11.73. I guess not this time! When the 10 contract trade was purchased, the spy was roughly at the breakeven for the spread, I therefore also bought 187 - 168, sold 162-95 put spreads for downside protection. The 100 contract trade was already somewhat protected because it was ditm when I bought it. I should have rolled them up before ex div as you suggested to reduce the risk of being assigned. Next time, I’ll keep that in mind. I think in some number of comments above you were asking how I do things in the market. Since I don’t know the direction of the market and in general I think the economy is getting better but with some speed bumps, I try to keep the accounts market weighted. The account that these trades were in was only 50% in the market. My other accounts are roughly market weighted by which I mean, it moves roughly like the market percentage wise. This is somewhat misleading as I have downside protection that with small moves down (less than 10%) costs me nothing so I move up with the market but down less. I have been buying more protection lately. Recently I bought 10/3 spy 200-199 sold 192-180 put spreads for which I received $9.29 and 10/31 199-198, sold 185 -157.5 put spreads for which I got $101. You’re right that these provide some protection in a small move down and along with selling puts (I still have the aapl 10/3 98 puts that I’m short) generates some income. I think I’m going to buy more of this protection as we may have more bumpiness going forward but I want to pay for them by selling put spreads. If those become itm, I’ll roll them out unless they represent a 5% drop in the market for which I’ll stick with getting assigned. I plan on buying more spy every 5% down in larger increments the more the drop. I’m also waiting for some significant drops in aapl, googl, baba, fb etc to buy some of these.</p>
<p>Interesting… You have built positions so you can automatically buy more if the market drops a certain amount and if the market doesn’t, you can still make some money. </p>
<p>I am short the spy dec 170 puts. Not many. I am willing to buy spy down there. Maybe, I will do something similar to what you are doing. </p>
<p>Anyway, nice profit.</p>
<p>There are advantages to having trades close out early.</p>
<p>For example, you tried to make .8727 by Jan and with a little bit of luck, you could have made that by Sept. Closing the trade in Sept frees up your money sooner so you can make even more money. </p>
<p>You can use the early exercises and take advantage of them… Sometimes … If the etf cooperates by trading in an area that makes your short calls trade at parity well before the expiration date.</p>
<p>So Doct made money. Congrats! I’m still clueless reading all these posts. The only thing I get out of them is to be aware of ex- dividend date.</p>
<p>Well…being aware of the ex dividend date is important.</p>
<p>I bought the aapl 102-103-104 butterfly for 18 cents.</p>
<p>I don’t love it, too many commissions on a $1 butterfly ,but I had one leg on and I want to go for a hike and I don’t want to watch the market that carefully for a couple of hours. :)</p>
<p>I didn’t want to sell the options this year but rather next year as I expected to have reduced taxes next year due to my goal of reducing my work hours.</p>
<p>I know. What I wrote addresses the future. Aren’t you going to continue doing these type of trades? </p>
<p>You are going to be happy that spreads you bought are maxing out months earlier than expiration. You aren’t going to get caught ever again. You promised. Even a cat knows after touching a hot stove not to touch a stove again. :)</p>
<p>Yes I’m going to have to write this on my forehead so that when I look in a mirror I’ll remember.</p>
<p>Lol!!!</p>