Right now ZIM fell after earnings and has announced 4.75 dividend for those holding august 29th. Current price is around 48. I am thinking of a way to play such dividend stocks and this set up where it has considerable percentage payout. So this is my thoughts. Buy puts at the 40 dollar strike for September monthly expiration. Buy stock and sell covered calls on the way up. If my calls go itm I can roll them out. So short term wheel. Also with the September rate hikes it can be a little hedge that can work but the 10 percent dividend payout has peaked my interest. Best case scenario is I keep selling and closing the covered calls on dips and it doesnt drop past 40 since its that strike has been the lowest so far intrayear. Coulda woulda bought earlier but im digging this play right now to swing.
Last time they paid the Extraordinary Divi it went from 70 to nearly 90 in the two weeks leading up to it. And then dropped from there. Their YOY EPS was actually better than same Q last year.
I’d assume this was a result of forecasting guidance too high. As they still put up pretty solid numbers and I feel like they are substantially under valued now at their current price. I had pretty good success on last divi swinging calls up to the date. And probably should have played puts from there in hindsight.
As someone who was in the the last zim dividend capture play from I think @naked, it became apparent real fast that the play was not to sell calls and hope to catch someone slipping but to buy calls and shares in the run up to that sweet ass dividend. I picked up 48 shares and 5 50c today and hoping for similar run.
Interesting , i was lookjing for an entry at 45 or a retest of 46. I will probnably go shares on this and and get the dividend instead and just keep scalping calls on macro and check if this deviates from macro trends
Well 3 of my calls just sold for what would be equal to the amount I would get for the dividend. May try to re-enter on dips. Hoping my shares get a $4.75/share by next fri and I’ll cut then. Saves on taxes
grabbed 8/26 52cs on the dip this morning.
Quite the dip this morning. I see that Citigroup downgraded today from buy to neutral. I got into some $52 calls yesterday that have wiped away my profits from earlier $51 calls I previously closed. May try to average down on these $52s when it appears to have found bottom, hopefully soften the loss. Although it’s early, could turn around by eod!
So for anyone holding shares still for the dividend, it looks like last ex dividend date, it did end up after a significant drop at open. I really don’t expect it to drop all day tomorrow givin the strong support at around 40. My plan as of now is to buy puts and maybe sell my shares at openish. Then maybe pick my shares back up and buy calls but with jpow speaking tomorrow gonna play it by ear
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