Some questions about Options.

[JForex78]

4. The dividend is awarded to the person you put the stock to (assuming it is going to be the put holder's before the record date)

The only time you get to keep the dividend in this scenario is if you do not exercise or the put is exercised after the record date.

Thats what I mean - exercise the Put - or sell the stock, after the dividend is paid.

Btw, is there a good Options simulator out there?
Where I could do these series of buying underlying, buying a Put, and see the results?

 

[Option_Attack]

Thats what I mean - exercise the Put - or sell the stock, after the dividend is paid.

Btw, is there a good Options simulator out there?
Where I could do these series of buying underlying, buying a Put, and see the results?

https://www.elitetrader.com/et/resources/orats-wheel.484/

 

[JForex78]

https://www.elitetrader.com/et/resources/orats-wheel.484/

Thank you!

 

[El OchoCinco]

Also remember you have to have some intelligent opinion on the underlying stock when entering the option position. So in the example if you buy the $55 Call with the stock at $53 and it moves higher, it helps to have some sort of analysis on the underlying.

Is there resistance at $60, was $58 a previous high, did the stock already move up a lot from $45 until now, is there a fundamental event on the horizon, is there some TA resistance or did it just break through support, etc.

I think you will find this kind of underlying analysis will better guide you on when to close a position.