Few people "plan to die", but as a good buddy often says ... "Father time is undefeated!".Thank you very much for confirming! I do not plan to die, so this sounds perfect (besides having to remember to do the trade, and the small chance that the position moves by a large amount upwards after the divident payments.
The position will, on occasion, move upwards by a large amount (you just need to accept that risk) and sometimes downwards by a large amount. Those random gains and losses will balance out over time. Choosing a large stable index, such as the S&P 500 you mentioned, reduces such risk. The costs which will not balance out are the commissions (if any), bid/offer spread trading losses (choose a large, stable, liquid index such as the S&P 500) and the small daily stochastic increment. So, choose to do this trade only when the expected dividend magnitude justifies the risk, for you.
Statistics: Posted by Maple — Tue Dec 26, 2023 12:46 am — Replies 6 — Views 621