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Lorillard, Inc. Message Board

  • axpkocop axpkocop Nov 13, 2009 1:16 PM Flag

    If you sell a December Call option you still get the dividend

    Not a bad investment in you sell either the 80 or 85 December call options because the stock will drop $1 per share after going x-dividend in late November.

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    • There's always the possibility your stock will be called away the day before the x date. If I'm long Dec 80 calls (the opposite side of the trade you suggest) and the stock is trading @ 81 on November 25th, I might exercise to qualify for divy and break out even on the stock when it open $1 lower the following day. The higher above 81, the more likely this would happen. You would not be a shareholder of record on x date and would not receive divy

      not saying you shouldn't do...just something to consider

 
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