Forum: Traders Hideout
November 8th, 2012, 07:12 AM
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Replies: 5
Views: 5,856
dividend risk
The only time you have to pay the dividend is if you are short the stock. By short I mean you borrowed the shares from your broker (sold them) with the intent to buy them back later at a lower price....
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Forum: Traders Hideout
November 7th, 2012, 07:11 AM
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Replies: 5
Views: 5,856
dividend risk
Here's the deal, you have to be long the stock on the ex-date to collect the dividend. (long a call option on the stock provides no dividend rights) If you are short an option that is in-the-money at...
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