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Lorillard, Inc. Message Board

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  • hirsct hirsct Nov 13, 2009 5:58 PM Flag

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

    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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    • If your stock is called three weeks early that also works in your favor because the time value of the option. It's only a 5 week option.

      I sold the 85 calls Friday and I was already short the 80 calls. I'm more concerned about LO dropping back to 75 and I'd like to have cash to buy more thus I'm selling call options.

      • 2 Replies to axpkocop
      • The bid on the Dec 85's is only .35
        If I had a larger position I'd sell the calls but with only 1,000 shares I'd only get $350 less commish. I need more premium to make it worthwhile

        You must have a lot of stock

      • This is not going back to $75.00. 50 day moving averege is $76.50.This stock is like strong as a steel.I trade many stocks this one I made most money of.Great company.Do not forget one simple rule-once the stc]ock reaches $80.00 next step(85 percent of stocks) go to be $95.00This is the one.Buy on waekness,I have been doing it for past 10 months.It is my favorite one.Monday here is nEw york I will get to meet Mr.Orlowsky at the Morgan Stanley conference.The best ceo value creator.Goldam Sacks boys will make this one $100.00 guaranteed.

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