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One other thought I had on this strategy. If it works as desired, you have a short term capital loss that is exceeded by the dividend income. But for regular retail traders/investors, capital gains loss is limited to $3k a year and can't be further used to offset dividend income. So unless...

Nasdaq Trader, I suppose you also noticed that these stocks went ex-dividend today: D (.525 dividend, closed down .71), GS (.12 dividend, closed down 1.36), and CAG (.104 dividend, closed down .19). Agree that low volatility stocks minimize the risk, but also minimize the gain potential...

There's too much risk of holding common stock for this long a period of time. I think it has a better chance of working with preferred stock and income producing exchange traded funds. But these stocks are more sensitive to interest rate changes and are thinly traded with wide spreads...

Those solutions will also get some people fired.

Pennies are fine. Tighter spreads mean (in general), better prices for both buyers and sellers. But because it's more difficult to see market depth, the NYSE needs to provide a Level II type view.

lescor, Conceptually I agree with you. But a consideration is that most of these stocks are thinly traded with wide spreads. Difficult to move in volume. Additionally, even without a rating change, they do react in price similar to the bond market. Backtesting over the last year with...

NASDAQ Trader, You'll also notice that stocks open higher than the previous day's close even when no dividend is in play! But actually, I think it's difficult to play this. I've seen stocks that seem to recover from the drop in price ex-dividend rather quickly. Others, particularly the...

Are you sure about not getting the dividend if you buy the stock after hours? I've done only a few after hours trades, but as I can recall, they are listed by the broker along with other trades that day and have the same settlement date.

I've had a few of these as well but usually get impatient, cancel the order, and then reenter. I hate the rare pink orders but fortunately haven't had any delayed fills.

My TWS is set up to default to limit orders. So even when I'm taking the bid price on a sell (or ask price on a buy), my order goes through as a limit order. Unless you're talking big size, my experience is that the order will be instantaneous if the order is taken by TMBR or an ECN. NYSE...

Here's a typical example. Declaration Date - March 15 - Company declares a dividend of $0.50 "payable on May 1 to shareholders of record on April 18". Ex-Dividend Date - April 16 - In this case you have to be the owner of record at the end of the day on April 18 to get the dividend. Stock...

For those of you who got stuck on the wrong side of a FNM/FRE pairs trade last year but decided to become an investor and stick it out, are you smiling yet? After the price difference between these stocks fell to about $5 a share earlier in the year, it's now over $15 a share, up near it's...

When I place limit orders for NYSE stocks at the market price (i.e. bid when selling and ask when buying), I usually receive an execution report in well under 1 second. The exception is when the order gets routed to NYSE and the specialist is just in the process of moving the posted price.

I've stopped complaining about execution quality because there's always a possible explanation (excuse) for why I didn't get filled where I thought I should be. In your case, if you saw prints at 7.50 to 7.55, those could all have been market buys executed against limit sell orders. In other...

I put on the Schedule D the bottom line figures from my Excel worksheet, as if it was one big security transaction. In the description field I put (see attachment X). The printout I use from Excel has the same column headings and same order as Schedule D.

This is how you would report the 4 transactions in your example, with some made up figures to better illustrate: #1 Cost = 2000 Basis = 2000 Sold = 2500 Gain = 500 Gain for tax purposes = 500 #2 Cost = 2000 Basis = 2000 Sold = 1830 Gain = (170) Gain for...

And after you've learned to read a balance sheet and get a copy from your broker, don't forget to check out the independent auditor to be sure they're reliable, don't have a conflict of interest, etc.

The $3000 loss limit is a deduction. That is, it reduces your taxable income. The reduction in your actual taxes is $3000 times your incremental rate.

Pairs trading helps to eliminate market risk, and absent any significant fundamental reason for the ratio between pairs to change, the expectation is that the mean ratio will be obtained again in short order. If there's a fundamental reason for a change in ratio, then all bets are off. RD/SC...

There's no link. Harvard doesn't want to give anything away for free. I bought it from Harvard Business School Publishing. It is article 9-296-077 from July 29, 1997 and is titled, "Global Equity Markets: The Case of Royal Dutch and Shell". I don't recall the cost but probably only $10 or so.