I'm a bit surprised. Sold a covered call December 22 2012 strike of $40, on Las Vegas Sands (LVS). Stock has been trading north of $40 recently. Late November LVS declares a special dividend, like other companies have done due to tax laws. On 100 shares, they paid out $275 on 12/18. Normal dividend is usually $25.00 On December 21, my call option gets exercised....but at $37.50 instead of $40. I'm stunned. Oh, the brokerage firm is Etrade. I believe the dividend was just that...a dividend, and should not a capital gains distribution. Even if it was, shouldn't the option have been exercised at $40 ???
Your contract was adjusted. When you hear about a special dividend, you will want go to either the CBOE or the company itself for information about it.http://www.cboe.com/publish/ttstocksm/12-636.pdfLas Vegas Sands Contacts:Investment Community:Daniel Briggs(702) 414-1221
thanx much for the response and the link.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |