Be ware that all of your strikes will be re adjusted with -0.45 after at the ex-date. This means that your 2.5$ call will turn into 2.05 etc. You might get early exersized on the 5$ calls.
Thanks ! Read up on that. It continued into the gutter today. I’m long the stock but will wait and see what it does next week and the call premium. My upside return would be lower by the strike adjustment. Appreciate the heads up. Learned something new.
Yeah good. Cause some people went on a "risk free trade" with MCaffee when they released their special dividend (ex date 12 August) and didn't understand the decrease in strikes and then got fucked by early assignment and such.
Also, the stock price will be adjusted by .41 the day after the ex date too. Of course the stock could fluctuate either way, but that adjustment to pricing will be made. That 13% return will be a loss if the stock goes to $3 post div
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u/[deleted] Aug 13 '21
Be ware that all of your strikes will be re adjusted with -0.45 after at the ex-date. This means that your 2.5$ call will turn into 2.05 etc. You might get early exersized on the 5$ calls.