"The only way to trade with Fibonaccis" journal

[1a2b3cppp]

whoa gap up outta nowhere!

Buy - 700 shares of SH @ $37.70.

 

[tihfa]

Quote from 1a2b3cppp:

whoa gap up outta nowhere!

Buy - 700 shares of SH @ $37.70.

what is the goal with this hedge? is it get money off of upcoming dividends?

 

[1a2b3cppp]

6/7:

SPY: -$392
SH: $133
8 days until ex-dividend date

Net for this trade:
-----------------------------
-$259

 

[1a2b3cppp]

Quote from tihfa:

what is the goal with this hedge? is it get money off of upcoming dividends?

It allows me to not reduce my SPY position so I get more dividends, and it helps protect from potential wash sales, and I can make some money if price goes back down before going up to my target SPY selling price.

I don't look at the addition of SH as an equivalent reduction in SPY position. I look at them as separate trades.

 

[1a2b3cppp]

6/8:

SPY: $448
SH: -$84
7 days until ex-dividend date

Net for this trade:
-----------------------------
$364

 

[1a2b3cppp]

Looks like a gap up out of nowhere in the futures market right now. Will be interesting to see where price goes tomorrow.

 

[1a2b3cppp]

Gap up and then price came right back down to yesterday's close. Oh well!

 

[1a2b3cppp]

6/11:

SPY: -$904
SH: $224
4 days until ex-dividend date

Net for this trade:
-----------------------------
-$680

 

[1a2b3cppp]

going back up!

 

[1a2b3cppp]

6/12:

SPY: $304
SH: -$49
3 days until ex-dividend date

Net for this trade:
-----------------------------
$255