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Edwin

Dividend Collar

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Has anyone traded the dividend collar strategy with long term consistency of returns?

Buy shares the day of the ex-dividend, sell a call and buy a put for even or for a small credit, and then get out and cycle into the next dividend paying stock.

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Has anyone traded the dividend collar strategy with long term consistency of returns?

Buy shares the day of the ex-dividend, sell a call and buy a put for even or for a small credit, and then get out and cycle into the next dividend paying stock.

divs are priced into options so I don't see why this strategy would make any money. If anything stocks tend to fall a little less than the dividend on the ex-div date as the stock looks optically a bit cheaper now which would hurt that strategy.

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