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DivCap Of MORL (Slightly Messy)

Thought I'd start posting screen shots of my divcaps (successful or not) with the new year. One of my favorites is MORL, which pays its large dividend every 3 months. I maintain a watchlist of its components so I can judge its intraday direction.

Ignore the trades prior to Jan 10 oh and the one at 16.40 is an after-hours fat-finger error.

Jan 10 - I set a series of limit orders to average down and accumulate as many shares as I can with the capital I will risk.

I don't chase upwards. At this point my average cost is a bit over $16.

Jan 11 - MORL exdiv day; it pays about 0.77 so I set limit orders

from the post-div opening price on down. As you can see there are many that got filled as the opening price 'overshot' to the downside.

The green horizon across the middle represents my new average price, after buying 3x more shares - new average is 15.77.

By 3pm, MORL was rebounding past 15.77, so limit sells began filling up to $15.84. I could have exited sucessfully at 15.77 but chose to wait as I expect more rebound tomorrow.

Overall this trade yields about $77 for every $1600 of the initial capital risked - in under 48 hours. It requires another 1600 or more to complete the ex-div buys - the more capital employed, the less time it should take to reach breakeven/exit.

I love MORL :-)

MORL divcap trades

Additional disclosure: This is a trade not a position