Today, November 18, we are closing out the 30 Day Dividends open position in Medley Capital Corp. (NYSE: MCC). The position will be closed with a loss of approximately 6.3% compared to the September 17 entry price of $12.40 per share.
The entry for the trade came just a couple of weeks before the October stock market correction, which knocked the MCC value down to low of $10.90. The share price has recovered 6% from that low, but not enough to get the trade back to a profitable position. MCC goes ex-dividend on Monday, November 24, which will cause the share price to drop by the $0.37 quarterly dividend.
The goal of these 30 Day Dividend trades is to profit from the share price swings due to market reactions to dividend payments. This trade was undone by a surprise market correction, which hit high yield stocks expecially hard. Earlier we did the same trade with MCC for a 5.4% profit.