Categories

Sign Up to Receive the Latest Trading Tips and News from Prosper



    April 25, 2019

    Options and Dividends

    Most investors understand the concept of stock dividends.  A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout. Companies may decide to distribute this type of dividend to shareholders of record if the company’s availability of liquid cash is in short supply.  A cash dividend is […]

    Read Article
    April 3, 2019

    How Do Dividend Payments And Option Prices Work?

    Cash dividends affect option prices through their effect on the underlying stock price. Because the stock price is expected to drop by the amount of the dividend on the ex-dividend date, high cash dividends imply lower call premiums and higher put premiums. Click the video below to see how I break this down for the class. Follow me at on Twitter  @CboeSib  

    Read Article
    March 6, 2019

    How Do Stock Dividends Effect Option Prices?

    Cash dividends affect option prices through their effect on the underlying stock price. Because the stock price is expected to drop by the amount of the dividend on the ex-dividend date, high cash dividends imply lower call premiums and higher put premiums. Source:  Investopedia Click the video below to see how I break this down for the class. Follow me on Twitter @Cboesib  

    Read Article
    November 19, 2018

    Options and Dividends

    Most investors understand the concept of dividends.  Many options traders do not understand how dividends and options are related.  Today we have a great example of how these asset classes work together.  Click the video below to find out how. Don’t forget to follow me on Twitter @cboesib

    Read Article