Apple special dividend in 2018?

What are folks thoughts ? Think we'll see one. It would really disrupt the options market.

 

Why would it do that? Any non-regular dividend are adjusted with the options by the OCC.

 

Well, it would zero out any puts with strikes of less than the dividend adjustment...

 

good point, even regular dividends can disrupt option trades if you are not careful,

 

Wouldn't those puts already be near worthless?

 

Any special dividends (well anything > 10% of the closing price of a stock) will adjust the contract terms. Nothing to see - move along.

 

Yes, in the case of a (relatively) low-vol stock like AAPL. But for SHLD... the Jan 2019 $3 put is currently $1.55, with SHLD at $3.62. If (by some miracle) Eddie paid a $3 special dividend, it would erase those puts.

 

Any example like that? chance of shld paying $3 is
0.0000000000000000000000000000000000000000000000000000000000000000

bette come up with something better

 

DRYS

 

don't trade illiquid crap