Only when a special dividend is above 10% of stock price, then the option's strike price will be lowered etc.
But say we have XYZ with a stock price of $50, giving out a $2.5 dividend to shareholders tomorrow. We could buy the puts at $50, and sell after the dividend gap tomorrow.
Now, I know probably hundreds of thousands of people have thought of this so what don't I see?
Thanks in advance for any helpful replies...
But say we have XYZ with a stock price of $50, giving out a $2.5 dividend to shareholders tomorrow. We could buy the puts at $50, and sell after the dividend gap tomorrow.
Now, I know probably hundreds of thousands of people have thought of this so what don't I see?
Thanks in advance for any helpful replies...