BBVA shares yield €607 profit for Spanish investor

From buying BBVA at €7.19 to selling at €7.843: €607 capital gain

July. Spanish debt is taking a beating in the market, and half of the stock exchange watches the risk premium more than the clock. In this scenario, a retail investor documents their move: 1,000 BBVA shares at €7.19 with a planned sale around €7.90. The stated goal is to fund a holiday: they need €800, a 10% return on the entry price. And the timeframe isn't a year. It's one week.

The majority response goes in the opposite direction. The trend is "extremely" bearish, Spanish debt scares investors, and no one detects the capitulation that usually marks true bottoms. One phrase best summarizes the mood, echoing a classic adage: don't try to catch a falling knife. Another practical recommendation: set a 5% take-profit if you want short-term gains.

What was the exact plan for the trade?

The arithmetic is simple. Buy 1,000 shares at €7.19, exit expected at €7.90, yielding €710 gross profit, which falls significantly after commissions. The technical argument supporting the bet is that the stock is at clear support: either it bounces in the coming days respecting the cycle, or it sinks below €7 for months. The investor accepts this condition: if it drops to €7, they capitulate.

There is even a moment of humor regarding the buyer's identity. Someone suggests they work for BBVA itself. The reply, amid laughter, is that they are just an IT consultant on vacation. Ironies of trying to pay for holidays by buying shares in the bank.

Orders placed in Spanish banking stocks

In parallel, other strategies appear for the same sector. Some leave orders at €6.95 for Santander, others place €7.02 for BBVA and €7.04 for Santander, while some insist on not buying below €6.8 this time. They say Santander has strong support around €7, and buying before the dividend lowers the purchase price by 13.5 cents.

Messages mix analysis and banter. Waiting for a 10% return in a week deserves a facepalm; the stock is closer to €6.5 than €8; last year it hovered around €7 before going to €10. No one has a crystal ball, but almost no one signs off on the plan as-is.

First close and the weight of commissions

The first day of tracking shows a close at €7.215. The account, as published: €0.025 per share multiplied by 1,000 shares equals €25 gross profit, from which buy and sell commissions must be deducted. Twenty-five euros. Half a dinner. The operation, so far, is neither here nor there.

And the wind remains against them. BBVA opens at €7.14 and then hits €7.05, with the stock down 2%. Domestic details mix with macro factors: Moody's threatens to downgrade major Spanish banks, and in the US, the August 2nd debt ceiling deadline looms over everything. A Spanish financial stock exposed to sovereign debt, in the middle of a storm. Quite a cocktail.

Are dividends taxed?

The conversation shifts to taxation, revealing a detail many overlook. Dividends are tax-exempt for the first €1,500, but with conditions. The exemption does not apply to shares bought within two months prior to receiving the dividend if those same shares or similar ones are sold within the trinc two months. For non-listed securities, the period extends to one year. Those entering solely for the dividend and exiting quickly may get a surprise from the tax authorities (Hacienda).

The outcome: €7.843 per share

It ends well. The sale executes at €7.843. The math: €0.653 per share multiplied by 1,000 yields €653 gross, €607.12 net after commissions. Below the €800 target for holidays, though the investor dismisses it with a "for drinks." Along the way, the trade dipped to €7.05, in the red, with the capitulation stop just a step away.

The other side of the same coin is held by someone who bought 2,000 shares at €9 and assumes a long horizon: ten or fifteen years, via dividends, to recover the investment. Two opposite ways of looking at the same bank. One closed with profits in days. The other is still waiting, and the warning about the bearish trend wasn't wrong.