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Subject:  Re: OT: dividend/option problem, anyone know? Date:  12/21/2012  9:51 AM
Author:  blacktreechaser Number:  34568 of 36324


For those who buy dividend stocks and write covered calls for income, exercising those options early to grab the last dividend has become strandard practice now. I'd reccommend selling options which are due 2 to 1/2 months past the last expected dividend date.

Anyways, expect this practice to knock down your yield about 5%....instead of around 15%, expect to get about 10% return if someone takes your last dividend payment.
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