Hello everyone – I have been following the discussion and learning from all of you, but haven't been active on the board. Wanted to share an observation and a question on FTR. Seems like the December calls are priced with little to no premium (e.g. the $8 Calls at $1.2, $9 Calls at $0.5 with the stock at $9.2), is that an indication the ex-dividend is priced in?
People who bought the Calls can theoretically exercise on 12/13 and grab the dividend, right? So the idea to Buy-Write, keep the dividend, and have the stock called away may not work as expected?
December 4th, 2017 at 4:29 pm
Hello everyone – I have been following the discussion and learning from all of you, but haven't been active on the board. Wanted to share an observation and a question on FTR. Seems like the December calls are priced with little to no premium (e.g. the $8 Calls at $1.2, $9 Calls at $0.5 with the stock at $9.2), is that an indication the ex-dividend is priced in?
People who bought the Calls can theoretically exercise on 12/13 and grab the dividend, right? So the idea to Buy-Write, keep the dividend, and have the stock called away may not work as expected?