Tuesday, September 25, 2012

SPECIAL SITUATION:

There has been talk in the media that many companies will be issuing special dividends before year end to avoid the possible Fiscal Cliff raising of the dividend tax. This can be good or bad, for DITM, depending on the size and nature. As we found out awhile back, sometimes it can affect the option price as well - if not, the extra dividend comes out of the part that you "pre-sold" by the ITM call!!
Also, the DIA, while not paying much, pays higher dividends in Nov., Dec. due to which stocks of the Dow 30 go ex then.
I'm looking also at JPM - A rated by Schwab, only less than 3%, but nice call premium.
For a real flyer, check out ALSK, going ex tmrow. risky (don't try with milk money) but looks oversold.
LOL

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