Covered Call on Wynn, Dividend Capture Strategy

Quote from KINGOFSHORTS:

I got a free lunch once in wall street.

It was pretty good actually.
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i was visiting new york 2 weeks ago and had pizza on wall st! it was pretty good...
 
Thanks for the input, is there anyway you could explain how they "adjust" the price of the options, i'm not qutie clear on it? Will the contract adjust to include the dividend in the price, and therefore not fall on the ex-div date?

thanks
 
Quote from elduerino:

Thanks for the input, is there anyway you could explain how they "adjust" the price of the options, i'm not qutie clear on it? Will the contract adjust to include the dividend in the price, and therefore not fall on the ex-div date?

thanks
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The dividend is for 4 bucks, so for example the 50 strike will now be the 46 strike and the 45 strike will be the 41 strike and so on. Its a simple way to price in the special dividend since the srikes have already been listed. Go to the OCC web page.
 
Quote from elduerino:

Thanks for the input, is there anyway you could explain how they "adjust" the price of the options, i'm not qutie clear on it? Will the contract adjust to include the dividend in the price, and therefore not fall on the ex-div date?
More...
Here's a link to the CBOE page where they provide contract adjustment details for recent corporate events. Check out the one for Terra Industries which also declared a large special dividend:

http://www.cboe.com/tradtool/contracts.aspx
 
Quote from kinggyppo:

unfilled gap from yesterday, 60 puts penny wide spread. May have to check it out.
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There is no real gap the price adjustment has to do with the special dividend announced LOL
 
Quote from kinggyppo:

unfilled gap from yesterday, 60 puts penny wide spread. May have to check it out.
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Apparently you believed it was an unfilled real gap as evidenced by the post you made earlier, you made a mistake move on.
 
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