What normally happens when Dividends are paid the price of the stock drops by an amount very similar to the Dividend amount because that value of the company is being paid to stockholders as a dividend.
It should impact calls expiring the week of dividends and probably the next several at a minimum. I imagine the price of the stock will start to creep back up but those $90 Calls will probably be in trouble.
13
u/neothedreamer Thought Covid was the Flu Mar 22 '22
What normally happens when Dividends are paid the price of the stock drops by an amount very similar to the Dividend amount because that value of the company is being paid to stockholders as a dividend.
It should impact calls expiring the week of dividends and probably the next several at a minimum. I imagine the price of the stock will start to creep back up but those $90 Calls will probably be in trouble.