and I wouldn't change this system for the world.Submitted by moonyou22 t3_11dfyy3 in wallstreetbets
Drivesabrowntruck t1_ja9m584 wrote
Reply to comment by RollTheDiceFollowYou in and I wouldn't change this system for the world. by moonyou22
You must of missed when $F announced the DIV. Lotta guys got exercised early for ex-div
CheeseSteak17 t1_ja9vjoh wrote
The stock also dropped by the dividend value that day, so it was net neutral. The special dividend was accounted for in option strikes. As a seller of both puts and calls that week, it was pretty meh.
Drivesabrowntruck t1_jaa1zcs wrote
The special dividend wasn’t accounted for, before those options were written, so Theta was already priced in. Short sellers have to pay the DIV on shares shorted, so they took a hit on the strike price they borrowed at, if not hedged
CheeseSteak17 t1_jaa42i5 wrote
All options had the strike lowered by 0.65, which accounts for the special dividend.
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