Thursday, September 10, 2009

Re: [TheOptionClub.com] Calendars and Dividends

 

I'd be on the phone to my broker. Quicker answer there.


Mark

Mark Chaudhary
~
coup d'oeil...tempus fugit!

On Sep 11, 2009, at 12:40 AM, drrobhansen wrote:

No, I checked and there was no assignment. In fact, none of the positions in the double calendar are in the money. I am short the Sep09_50put and short the Sep09_52.5call. I am long the corresponding October options. Maybe there is some synthetic component going on here? Anyone else have an explanation?

RFH

--- In OptionClub@yahoogroups.com, "Kenneth Ginsberg" <ken_ginsberg@...> wrote:
>
> If your ONLY WMT position is as stated, then something is wrong. The only
> way you should be debited the divvy is if you were actually short the stock
> itself. Have you checked to see if your short options had been exercised and
> you missed it and you are now short WMT instead of still in the spread?
> 
> 
> 
> Ken
> 
> 
> 
> 
> 
> From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On
> Behalf Of drrobhansen
> Sent: Thursday, September 10, 2009 11:14 AM
> To: OptionClub@yahoogroups.com
> Subject: [TheOptionClub.com] Calendars and Dividends
> 
> 
> 
> 
> 
> I'm in the process of learning how to successfully trade calendar spreads,
> and currently have a position in WMT. I'm short the Septembers and long the
> Octobers at the 50 and 52.5 strikes. I checked my account and noticed that
> my cash balance was debited yesterday for a dividend that Walmart paid. I
> was totally unaware that this type of spread was subjected to dividend
> payments. Could someone be kind enough to elaborate on how and why this
> happens?
> 
> Thanks, 
> RFH
>


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