Option Strategies Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Option Strategies

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Elroy who wrote (2471)	3/15/2023 7:28:45 AM
From: FIFO_kid2	Read Replies (1) of 2591

I can say to this day I still haven't figured out the technical criterion of what is considered a special dividend where the value of the option decreases by the amount of the special dividend and when a variable dividend does not effect the option's price. i.e. CTRA actually still issues two tiers of dividends that once was subject to this adjustment and now it is not. Although I haven't to date taken this approach with an option that issues a very large distribution the main appeal to me with a UAN put sale is the premium is automatically considered a 60% LTCG 40% STCG without holding it for a year. This is off topic :One thing I do know that most people don't if you happened to sell the highest value SIVB put at the close last Friday minutes before the bell (where no party had the time to assign the stock to you) the seller would have pocketed all of the premium without any recourse because the stock can not be delivered because it is suspended. This happened to me with the Russian company MTL in 2022 where I was able to pocket the generous premium even though the price was below my strike.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next