Replies to post #1266 on S2 Option Trader

[Newly2b]

A good play that can work is to short a stock just before it's ex-dividend date, It's more than likely to drop the amount of the dividend.

The only problem with that strategy is that you, the short-seller must pay the dividend amount to the buyer of the stock you sold. The original owner receives the dividend from the company, but the guy who bought from you also qualifies for the dividend, so you have to pay it to him. On top of that, if the stock price does not drop at least the amount of the dividend, you have lost both on the dividend and on the price. If anything, far, far better to buy rather than sell prior to ex-div date.

Newly

[goofyfoot]

Plash, you're right, the stock is not the company. Something I keep forgetting.

I guess I need to really stop thinking about a company being worthwhile, and looking more at its chart, like newly said. For example, I've been looking at some Chinese stock charts, besides SOL. Stocks like LIWA, APWR, and GSI all have charts that show obvious down trends.

Those charts show that I could have said that almost each day in the past month was the bottom, and I'd have been wrong. They just keep going lower. Glad I seemed to have had enough self-control not to buy them.

I saw something on some blog tonight that said to never hold a stock overnight. I know some people do this kind of trading, but it really shows a total lack of trust in the market. As much as I hope it never comes to this, the market is becoming so volatile that maybe that might be a good policy. At least, everyone's losses would be smaller (maybe).