AAAAAA!!! Avis/Budget...CAR

[TheDawn]

I typed this in on Google...Again this has happened to me before.

"Do option strike prices get adjusted for special dividends?"

Most frequently, the strike price of your option will be adjusted lower to reflect the amount of the special dividend. For example, a one-time cash payment of $5 could turn your 25-strike call into a 20-strike call.

That would be special corporate action done on the options. Most of the time they don't from the questions that I have been seeing posted here on ET. Time will tell if they are going to indeed do a special strike price adjustment. Even so, an adjustment of the strike price from $210 to $200 to reflect the $10 special dividend is still a 6% jump.

 

[Cabin111]

As I write, CAR is plus $10.42 ($204.00)!! It seems (since the Fed stayed put) that everyone is trying to grab for that special dividend. You have value investors, option traders, short traders trying to place their orders.

Just wondering if I will get called away this afternoon...

 

[Cabin111]

So I looked at my Fidelity account this evening.

The shares did not get called away...I get the special dividend (which I wanted).

The strike price has been reduced to $200. from $210.

I try to tax plan for some of my trades...

If this gets called away (still can happen till the end of the year), I will bump into a higher tax bracket...

I bought this cheap ($37.something) in the middle of the pandemic...