Sorry, "reason" may not have been the right word. I can appreciate your point on language.
What I am trying to say, poorly enough, is that for a brief moment you are trading on pure short exposure with no interest build. It was distributed. Also, I think we may want to reword ex-date to ex-distribution. If you purchase on that date and hold through quarter by quarter, you will have built up a cushion of distributed interest or looked at another way your break even keeps getting better. Does this make better sense?
Roger, I appreciate your comments. I am a new hand at this, so your comments help my future articles. Also, you have a small fan here, as your blog inspired me to start my own. Call it Roger Wanna be. Keep up the good work!
On S&P Short ETF Action and Chesapeake Corp. Options [View article]
The structure is 95% swaps. The div still flows thu the swap from the counter party. The div is invested in over nights. They chooses to pay put a "distribution" quaterly. Had to make a call on this one.
On S&P Short ETF Action and Chesapeake Corp. Options [View article]
This one really caught me off gaurd. (SH) is made up differntly and it was the distribution that moved it down. See my blog for full story. Very interesting!
More On S&P Short ETF [View article]
What I am trying to say, poorly enough, is that for a brief moment you are trading on pure short exposure with no interest build. It was distributed. Also, I think we may want to reword ex-date to ex-distribution. If you purchase on that date and hold through quarter by quarter, you will have built up a cushion of distributed interest or looked at another way your break even keeps getting better. Does this make better sense?
Roger, I appreciate your comments. I am a new hand at this, so your comments help my future articles. Also, you have a small fan here, as your blog inspired me to start my own. Call it Roger Wanna be. Keep up the good work!
On S&P Short ETF Action and Chesapeake Corp. Options [View article]
On S&P Short ETF Action and Chesapeake Corp. Options [View article]
On S&P Short ETF Action and Chesapeake Corp. Options [View article]
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On S&P Short ETF Action and Chesapeake Corp. Options [View article]