Are option prices linked to devidends

[spindr0]

Quote from ptrjon:

I heard Ameri - prise gives free lunches.

IS that anyhting like an "I drank waaaay too much beer" free lunch???

WHOOP
WHOOP

 

[spindr0]

Quote from sle:

Well, not exactly true - there are a lot of hedgies that do div arb. You sell a lot of puts, delta-neutral and hope that there are some people who did not get the memo and forget to early ex.

But isn't that "hope" really a function of chance (human error) rather than a pricing advantage? (put to call edit correction noted)

 

[MTE]

Quote from sle:

Well, not exactly true - there are a lot of hedgies that do div arb. You sell a lot of puts, delta-neutral and hope that there are some people who did not get the memo and forget to early ex.

Yes, I am aware of this, but I think for the purpose of this discussion my reply is accurate.

 

[sle]

Quote from MTE:

Yes, I am aware of this, but I think for the purpose of this discussion my reply is accurate.

Yep. Unfortunately, that is true, it's just sometimes I wish there was more real technical talk here.