Arnie...What people are trying to say is that this is something you should have realized early on in trading options. I didn't know (figure out) the effects of dividends till about 6 months after trading (covered calls). Live, learn (much study) and move on...
I see that my post was poorly written...again. I see from the responses that everyone missed my point. Totally. Maybe I should take some writing classes.
You need to learn and think for yourself and ignore every one else's opinions and advice. Just know how to think independently and cleverly.... Because that's the only way you're going to survive in this life Guitar of Arnie
Did you mean to ask what percent of ItM calls are exercised early to capture the dividend?? where were you going with “the company”??
I'll try one last time then I'll leave the thread. Let's say that a company has a quarterly dividend obligation of $1M. All I was asking was that on average, how many short ITM Calls are outstanding and how much it reduces the company's dividend obligation? Instead of $1M going out the door, Is it $950k? I'm almost afraid to be misunderstood twice...
Option assignment has zero to do with a company’s payment of a diividend. Quarterly div of 1 mil gets paid out to shareholders short interest , short calls doesn’t affect the company’s payout ratio .
Dumbest thread in history of history. As stated: he thinks the shorts underwrite the div-paid. Increase the Necksium.
Dest... did you ever figure out how many people screencapped your IB account # when you stupidly casted your desktop to youtube in order to prove you had a lousy $900k in there? I bet it wasn't just me