Extreme Dividends Investor Group
Hi Everyone
As promised YieldMaxETFs published some dividend declarations today. If you are interested in collecting these dividends the deadline for purchase is before the closing of the market this afternoon – 4:30 EST. Included are 2 funds we follow – TSLY and YBIT.
Highlighted in the chart, is also the CRSH fund. CRSH ia actually a fund selling Tesla PUT Strategies (insurance against the price of TSLA dropping. Intuitively one would expect CRSH to drop as TSLA goes up reflecting potential anticipated dividend reactions. However according to the short History of CRSH, both seem to pay high dividends together. Thus when TSLA is doing well, there is lots of insurance profit being made and the silly low price on CRSH with the high profit dividend make it a bargain hunters delight (another example of taking advantage of stupid people). 2 days ago, this stock hit its low of $12.52. This morning it is up to $13.20 – up $0.68. Considering that its paying $0.98 on Friday It is a bargain today. Historically the price seems to drop about $0.50 on the Ex-Dividend date (tomorrow). However the stock price has been in a downtrend since the beginning of August. Because it is cheap now, I am going to buy a little now (at $13.18) and if TSLA is strong over the next week or two, there should be a further stupid people opportunity at which point I will buy some more.
As far as the possibility for a hedge play, the slippage (price difference between bid and ask) on mid October options is very high, so there is probably not a workable move on near term CRSH options.
Best regards,
Clint