Position Close: KCAP Financial Inc.
I am closing the open 30 Day Dividends Position in KCAP Financial Inc. (NASDAQ: KCAP)
The trade was initiated on November 17, 2015 and was intended to be a between ex-dividend dates swing trade. Unfortunately, the entire financials sector took a fall starting in November with a bottom in late January. As a small cap BDC, KCAP fell harder and deeper. Our open position was down over 40% at the market low on February 12th.
KCAP goes ex-dividend next week, on April 5th. I do not want to keep the position open through another ex-dividend drop, so I am closing the position before the stock goes ex. With one dividend earned during the holding period, the trade will end up with about a 20% loss.
Recommendation: close any open positions in KCAP. I will use today’s (March 31st) closing price to calculate the trade results.