Covered Call on Wynn, Dividend Capture Strategy

i was visiting new york 2 weeks ago and had pizza on wall st! it was pretty good...

 

Thanks for the input, is there anyway you could explain how they "adjust" the price of the options, i'm not qutie clear on it? Will the contract adjust to include the dividend in the price, and therefore not fall on the ex-div date?

thanks

 

The dividend is for 4 bucks, so for example the 50 strike will now be the 46 strike and the 45 strike will be the 41 strike and so on. Its a simple way to price in the special dividend since the srikes have already been listed. Go to the OCC web page.

 

Here's a link to the CBOE page where they provide contract adjustment details for recent corporate events. Check out the one for Terra Industries which also declared a large special dividend:

http://www.cboe.com/tradtool/contracts.aspx

 

unfilled gap from yesterday, 60 puts penny wide spread. May have to check it out.

 

There is no real gap the price adjustment has to do with the special dividend announced LOL

 

I am aware of why it was created that was the point of the thread. The issue is price action before the dividend date.

 

Apparently you believed it was an unfilled real gap as evidenced by the post you made earlier, you made a mistake move on.

 

ok

 

Some insight into the game at the top.

http://www.thedisciplinedinvestor.com/blog/2009/11/10/steve-wynn-wynn-a-flippn-genius/