Dividens now rather than later

Discussion in 'Options' started by riskfreetrading, Oct 29, 2009.

  1. There can be a good delay between ex-date and dividend payment date.

    How to get dividend captured using options in way the dividend is in the account on ex-date +1 or sooner?

    If you think it is impossible, explain why?

    First to answer will get a thread medal---the option rookies' guy: this is your chance to redeem yourself.
  2. you need to go synthetic long, buy ATM call and sell ATM put. Its even better because the dividend is converted into capital gain which is better against Mr. Tax
  3. I usually sell on my long term portfolio OTM calls (low delta) let them expire worthless

    and reinvest proceeds back into equity in addition to the dividend reinvestment (fractional shares). For compounding power.
  4. oraclewizard77

    oraclewizard77 Moderator

    Sell the in the money put. The put already has the dividend built into its price.
  5. Thanks guys! The first wins the medal (the rookie guy failed again!)

    A question to oracle: are you assuming that the penny call will be worthless?
  6. what a moronic way to waste peoples time, thinking of ways to spend money on commissions and B/A spread in order to colect a dividend. The dividend is yours and will be put in your account on the pay date.