Early assignment

Discussion in 'Options' started by candletrader, May 4, 2004.

  1. Look at MO the day before it goes ex-dividend. There will be a lot of people engaged in dividend arbitrage.

    In theory you are right that everything should be fine and you will not lose out. However, one day you may wake up and find that MO (or the tobacco industry) loses a lawsuit. The stock gaps down and you will be screwed.
     
    #11     May 5, 2004