option and dividend

Discussion in 'Options' started by mikeenday, May 17, 2011.

  1. mikeenday

    mikeenday Guest

    do I get dividend if I buy calls?
    and lose dividend by having puts?
  2. rmorse

    rmorse ET Sponsor

    No. Only holder of record of the equity get the dividend. However, dividends go into the evaluation of the option as an asset class, because the inverse of your position includes div. flows. So, options price will adj. after x-div dates and include their value before.
  3. taowave


    If you buy an ITM call and exercise it before the X-date,you will collect the dividend.But there is a bit more to it than that...

  4. MTE


    No! To get the dividend you need to own the actual stock, and to lose (i.e. pay) the dividend you need to be short the actual stock.

    However, as others have mentioned dividends are priced into options.
  5. nat55


    Hi Guys

    I m looking a for a site which provides info regarding dividends payout schedule for Indices such as FTSE100, CAC40, DJIA, S&P500 etc... simply a date and amount payable for the entire index (not individual shares)

    I d like to obtain such info a few days in advance or weekly, lets say every Monday for the rest of the week.

    Does anyone perhaps know where I can obtain such info on aregualr basis?

    many thnaks
  6. MTE


    An index doesn't pay a dividend, only the constituent companies do. So, by definition, you cannot have a single date and amount for an index.
  7. rmorse

    rmorse ET Sponsor

    If you check out the website for the company that runs the etf or call them, you can see past data. I don't think any of them will project dividend for you. I've heard that Bloomberg has an accurate up to date "estimate."
  8. Figure out the likely next dividend for each index constituent.

    Weight it by the stock's market cap.

    Have hours of fun trading the ETF against the Index Future against the Basket of Stock...

    Ah .. except that's already been done.
  9. nat55


    Thank you all for the input.

    Brokers like FXCM charge dividends if you go short and pay dividend when u are long on that index. They workout somehow the dividend on the index, presumably by adding the dividends of individual shares due for payment on the day.

    On the FTSE100 they pay/charge for dividends every Wednesday.

    The question is where do I find this info a few days before it is due?

    I actually don’t mind adding up all the individual FTSE100 shares dividends manually once a week, but where do I find a site that offers the dividend of share that belong to one specific index like FTSE100 or CAC or DJI etc...

    Thanks again
  10. Do a web search on the index you seek. For example, "FTSE + COMPONENTS". Then use a finance site to look up the dividends (Yahoo Finance, CBS Marketwatch, broker's database, etc.). In some cases the site listing the index's components will have a one click link to the data for each component).

    Set up a spreadsheet with the dividend amounts and dates. You won't have to look them up weekly... just advance the date on ex-div as per the dividend frequency. Another thing to keep an eye out for is special dividends.

    Here's a link for one of many dividend sites:

    #10     May 18, 2011