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1a2b3cppp

Registered: Sep 2008
Posts: 2498

09-15-12 12:24 AM

I have a covered call position with a 9/21 option on SPY.

The ex-div date is also on 9/21.

Am I going to get the dividend as long as my option isn't called away before then? If so, what are the chances of that happening?

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loufah

Registered: Nov 2001
Posts: 1129

09-17-12 02:48 AM

My experience is that if you still own the stock on the morning of the ex-div date, you will get the dividend.

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newwurldmn

Registered: Apr 2011
Posts: 2614

09-17-12 02:53 AM

Quote from 1a2b3cppp:

I have a covered call position with a 9/21 option on SPY.

The ex-div date is also on 9/21.

Am I going to get the dividend as long as my option isn't called away before then? If so, what are the chances of that happening?

You will get the dividend if you aren't exercised. Odds are that if the option is in the money by more than the dividend you will get exercised.

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Rationalize

Registered: Jan 2010
Posts: 774

09-17-12 05:16 AM

Quote from loufah:

My experience is that if you still own the stock on the morning of the ex-div date, you will get the dividend.

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Rationalize

Registered: Jan 2010
Posts: 774

09-17-12 05:18 AM

Quote from newwurldmn:

You will get the dividend if you aren't exercised. Odds are that if the option is in the money by more than the dividend you will get exercised.

Some might say that the trade here is those odds specifically

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1a2b3cppp

Registered: Sep 2008
Posts: 2498

09-18-12 12:51 AM

Quote from newwurldmn:

You will get the dividend if you aren't exercised. Odds are that if the option is in the money by more than the dividend you will get exercised.

Thanks.

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