What did you trade today and why?

[COcheesehead]

You're absolutely right that the current display is showing the current day's movement. What it doesn't give you is a clue to what happened over night and the effect of what the dividend subtraction had on the share price

No market quote does. It shows that moment in time. A pre market quote will show you the after hours pricing. A chart will show all the price action.

 

[Randy145]

No market quote does. It shows that moment in time. A pre market quote will show you the after hours pricing. A chart will show all the price action.

If after closing on the day before ex-date, someone says the share price might be up tomorrow, it may be up on the day tomorrow but the bar got lowered due to the subtraction of the dividend before the market opened (and the other afterhours stuff, but let's keep it simple). So although it's up on the day, it may be (and usually is on ex-date) lower than the previous day's close. That's the point I'm trying to make but having difficulty getting through.

In retrospect, I'm not sure how Fidelity could do anything different because I believe the exchange is what actually removes the dividend from the share price. Fidelity is just passing the data along.

The fidelity charts don't show the afterhours fluctuations in share price, btw, just the results of those actions as one vertical line, up or down. Most often down on ex-date.

 

[COcheesehead]

If after closing on the day before ex-date, someone says the share price might be up tomorrow, it may be up on the day tomorrow but the bar got lowered due to the subtraction of the dividend before the market opened (and the other afterhours stuff, but let's keep it simple). So although it's up on the day, it may be (and usually is on ex-date) lower than the previous day's close. That's the point I'm trying to make but having difficulty getting through.

In retrospect, I'm not sure how Fidelity could do anything different because I believe the exchange is what actually removes the dividend from the share price. Fidelity is just passing the data along.

The fidelity charts don't show the afterhours fluctuations in share price, btw, just the results of those actions as one vertical line, up or down. Most often down on ex-date.

I give up. I could explain things further, but it’s likely useless.

 

[joejetski]

Added to PDI, DX, VTI and PHK in last couple days. Just nibbling, no huge purchases. DCA'ing as they go down.

Doing the same, 15-25 shares per day for each PIMCO I own (PDI, PCN,PAXS and PTY).

 

[Randy145]

I give up. I could explain things further, but it’s likely useless.

Ditto. It's a shame that you take on a condescending tone. I won't go down that road.

 

[junkanoo]

Ok, let me try this again from a little different perspective.

*GOF closed at 11.28ish on 3-12-26

*GOF opened at 11.17ish on 3-13-26 (ex-dividend date)

Between the 2 above times, the dividend was deducted from the share price. There was also some afterhours trading going on. The dividend is around .06 but the share price fell about .11, so the additional downside must have been due to that afterhours trading.

The amount that Fidelity will show for either a gain for this ex-day (green) or a loss (red) will be relative to the opening price for today. If the share price was 11.20 sometime earlier today, it would have shown a .03 gain (green). But, relative to the closing price the previous day, it would actually have been an .08 loss. The display for a stock or a fund or whatever outside of an ex-date is always for what happened between the previous close day and the current time you're viewing the display. Therefore, the decline in the share price due to the dividend being subtracted is being masked by Fidelity.

That's the best I can do.

My understanding is that after-hours trading has no impact on the opening price, full stop. Pre-market bid and ask *can* impact the opening price though. However, I would doubt that GOF and the like are getting that sort of scrutiny (if any) compared to, say TSLA.

Perhaps best that many CEFs are not adjusted pre-market. Low opening bids are put in place (as it is) to trap the novice investors selling via a market (versus limit) order.

 

[Randy145]

My understanding is that after-hours trading has no impact on the opening price, full stop. Pre-market bid and ask *can* impact the opening price though. However, I would doubt that GOF and the like are getting that sort of scrutiny (if any) compared to, say TSLA.

Perhaps best that many CEFs are not adjusted pre-market. Low opening bids are put in place (as it is) to trap the novice investors selling via a market (versus limit) order.

That's an interesting point. I'm not sure what goes on during that "dark" trading time or even what facilitates the trading. Besides the dividend being removed from the share price prior to opening on ex-date, there has to be something else there to make up the difference between prior day closing and ex-date opening.

In my comment that you quoted, I realize I made an error in it, btw. The current display will reflect the action that has occurred since the opening of that day, not closing of the previous day. Based on that I'm not sure there's anything Fidelity (or any other broker) can do to shine more light on the fact that the share price was reduced overnight but since the display is relative to the day's opening, it could show positive but still be less than the previous day's close. Forgive the wordiness but it is a bit hard to express the issue.

 

[surprising]

Sold RITM in taxable brokerage. I've been trying to get rid of CEFs and REITs in taxable brokerage to have more control over income for ACA purposes. I've been reluctant to sell RITM due to large cap gains. Well, 20% loss later, I sold at a small gain. I've held RITM for years, and used it's dividends to fund expenses for the last 3 years, so it did it's job of providing income with no loss of principal. I still like RITM and may purchase it in IRA or Roth.

 

[surprising]

In my comment that you quoted, I realize I made an error in it, btw. The current display will reflect the action that has occurred since the opening of that day, not closing of the previous day. Based on that I'm not sure there's anything Fidelity (or any other broker) can do to shine more light on the fact that the share price was reduced overnight but since the display is relative to the day's opening, it could show positive but still be less than the previous day's close. Forgive the wordiness but it is a bit hard to express the issue.

I think you had it right. Looking at a daily chart of any stock, the % gain/loss you see is based on the closing price of the previous day, NOT the opening price. **Except on ex-div day**, where the % gain/loss you see is based on closing price of previous day *minus the dividend*.

 

[Randy145]

I think you had it right. Looking at a daily chart of any stock, the % gain/loss you see is based on the closing price of the previous day, NOT the opening price. **Except on ex-div day**, where the % gain/loss you see is based on closing price of previous day *minus the dividend*.

That makes sense, good observation. Any action by afterhours trading would be factored into the current position display of the regular session, +/- whatever happened since opening and the dividend is factored out. Full circle on this. With an experienced and respected trader beating me up saying I've got it all wrong, some doubt crept in.

It seems like maybe this could be something under control of the broker's system. Wonder if this is the standard way with Schwab, etc.?

 

[MichaelB]

I give up. I could explain things further, but it’s likely useless.

Ditto. It's a shame that you take on a condescending tone. I won't go down that road.

Why don’t the both of you take it somewhere else?

 

[Randy145]

Why don’t the both of you take it somewhere else?

See private message, Michael. Thanks

 

[richardsok]

Bonds aren't doing well either. About the only safe place are MMs and ultra short term treasuries.

Don't count commodities and oil out. XLE and PDBC are on a tear.

 

[Randy145]

Don't count commodities and oil out. XLE and PDBC are on a tear.

That meteoric rise is a little scary but it doesn't look like there's much in the way of energy from continuing up, for sure.

 

[YellowSubmarine]

+ NEA and EICC add to positions with bond coupon/payments. Nearly double coupon rate with these distributions.

 

[NW-Bound]

Don't count commodities and oil out. XLE and PDBC are on a tear.

This reminded me that besides XLE I also have PDBC. Only a few hundred shares and held forever. A small position, hence I do not pay much attention to it. Just looked, and it lately shows signs of life. I recall buying this, thinking it's a hedge against inflation, but it did not do well when inflation was rampant. I will leave this alone for now.

 

[Fishmasterdan]

Trying to stay out of buying equities but wanted to add a little income. So sold some CSP on NVDA with its low PEG right now. Also don't care if I get assigned at 10% below its current price. Targeting 2% on the dollar per month on options.

 

[Flieger]

Got out of about 70% of my PIMCO holdings. Cash up to ~23%.

Flieger

 

[Flieger]

Bought some SPYI and QQQI (hopefully) pre Ex-Div.

Flieger

 

[COcheesehead]

I feel strangely at ease. Haven’t bought anything recently. My finances are all settled now after buying the new house. Laddered bonds cover the bills. Equities and alternatives provide some growth and maybe some capital preservation. I am sitting on 11% cash which for me is huge, but feel no motivation right now to do anything with it. Of course this all might change tomorrow.

 

[Flieger]

I feel strangely at ease. Haven’t bought anything recently. My finances are all settled now after buying the new house. Laddered bonds cover the bills. Equities and alternatives provide some growth and maybe some capital preservation. I am sitting on 11% cash which for me is huge, but feel no motivation right now to do anything with it. Of course this all might change tomorrow.

Happy for you COCheese!

Hope to be in your shoes in a few years after I get out of the $2100/month Health Insurance.

Flieger

 

[dickoncapecod]

Added some WDI pre-ex-date. Earnings are still okay, 13+% yield, ~6% discount, and distributions declared through May.
Regards, Dick

 

[NW-Bound]

Happy for you COCheese!

Hope to be in your shoes in a few years after I get out of the $2100/month Health Insurance.

Flieger

I did not pay as much as that even pre-ACA and only $900/month for 2 if memory serves. But the policy then was of course no pre-existing conditions, plus $10k/year deductible, plus lifetime limit of $1M. Been on Medicare/Medigap now for some years, paying $800/month for 2 with IRMAA.

Just think of the higher disposable income you will have when you go on Medicare. I thought it was ironic when I looked forward to getting older. Not quite the same as when I was in school and college, hardly waited to get older to have a good job, have my own house, control my own life...

 

[Flieger]

I did not pay as much as that even pre-ACA and only $900/month for 2 if memory serves. But the policy then was of course no pre-existing conditions, plus $10k/year deductible, plus lifetime limit of $1M. Been on Medicare/Medigap now for some years, paying $800/month for 2 with IRMAA.

Just think of the higher disposable income you will have when you go on Medicare. I thought it was ironic when I looked forward to getting older. Not quite the same as when I was in school and college, hardly waited to get older to have a good job, have my own house, control my own life...

I am looking forward to that, despite the "wishing years away".

Unfortunately for DW and I, $2,100/months Premium, $7,700 Deductible/per, $14,400 OOP Max.

Flieger

 

[junkanoo]

Bought BOXX ETF. BOXX is a LT Call/ST Put spread useful for parking money. It doesn't pay a dividend, so profits come from selling the ETF on your schedule. Thus, rather than taking a dividend (or interest) that will add to AGI, I'll use ST/LT losses to offset the gains ... thus no AGI bump and no taxes.