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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (12795)5/25/2000 2:40:00 PM
From: Richard James  Read Replies (3) of 14162
 
What happens if XYZ declare a $.20 dividend with a record date of June 1. I buy 1000 shares May 20 and short 1000 at the same time. I believe that I receive a $200 dividend for my long position, but pay the owner of the borrowed shares shorted $200. If I am wrong, and I do not have indemnify the owner of the borrowed shares for his lost dividend, this would be a great little dividend capture strategy. Am I correct that this strategy won't work?
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