The Two Most Important Dates in Trading

A lot can happen on Earnings Announcement Dates

Usually thought of as a coin flip, earnings dates provide a lot of excitement in the options trading world. Some investors like to trade these by buying or selling options and some prefer to avoid the date and not have options open over earnings.

Dividend dates

When a stock trades ex-dividend, the price will fall by the amount of the dividend. Leading up to the dividend stocks can experience a drift up as investors buy the stock in order to collect the dividend. Some traders try to take advantage of this by selling options that expire shortly after the dividend date and others prefer to avoid it altogether.

A common strategy is to sell covered calls that expire over dividend dates in the hopes that the stock rises and the shares are called away early thus yielding the maximum profit of the trade in the shortest possible time. If the shares are called away, the trader can extend the position after the dividend or for the following dividend date.

As always, your bot will do what you want. Tiblio AI ingests dividend dates within the next 45-50 days and while not perfect, makes every attempt to recognize upcoming dividend dates and then follow the settings that you configure about what to do.

Please note that configuring your bot not to trade over dividend and earnings dates will likely cause it to sell fewer options.

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