SPY short options DIV

Discussion in 'Options' started by asdfghj7, Jul 12, 2009.

  1. I've been studying SPY dividend information on ETFConnect.com It shows 6/19 as the last Ex-Date and 7/31 as the Payable Date. It doesn't show the upcoming Ex-Date in September, but I'm sure it's consistent from previous years. Ok, let's say in our example that it's a few days before the Sept 15 Ex-Day. In my portfolio, I am short 100 shares of SPY, and/or I wrote a SPY call short, and/or I wrote a SPY put. If any or all of these scenarios were true in my account, would I be able to get out of the obligation of paying the dividends by liquidating each position a day or two 'BEFORE' the Ex Day? If so, can you get right back in a few days later? I do appreciate the help. J
  2. No need to liquidate your short put position.
  3. mike007


    Being short a put means you are buying the stock at that strike. If your short call in ITM you could get assigned.
  4. the only case were you would need to pay the dividend is if you are short stock. No option position will result in having to pay dividends nor will it get you to avoid paying the dividend if you are still short stock going through the ex-div date
  5. Most of the time, paying the dividend is not a losing proposition - unless you own a call option you should have exercised for that dividend.

    Why are you so concerned with paying dividends?