how much dilution and reduction in share price will occur. would it be wise to sell now & buy back before ex-div?
TIA for replies
now I know why there was no premium on 22.50 sept calls. me thinks markets very, uh, would crooked be the right word?
Should have known. now what? buy more? sell? where is my crystal ball when I need it?, or an insider would help.
Just looked at days closing prices. Bid at 1.4 when in the money 1.45 is wishful thinking. If you got some at that price great.
I believe if the price holds at current levels the 22.50 calls may go up aproaching dividend. A bit risky as I don't think there is much upside potential. Also remember it is not uncommon for options to expire worthless. It is a risky investment, no dividends. If you have the cash, buy the stock, collect the dividends and not worry about day to day valuations. When the stock price declines after an SPO is when I buy options with some success. I am also long this stock.
I actually purchased them lower but my point was that in the money options 4 months out usually have a higher premium than is current for 9-22/ 22.50's.
Present bid at 1.4 is only a 6 cent premium. With the on coming divi it should go to well over 24.
Thanks for reply,