No. of Recommendations: 0
I sold some covered call options at the end of October. The company is FHI. The call options are the $22.50 of April 2020.
The broker is TD Ameritrade.
On Nov 5th, there is a transaction in my account showing a change in the strike price...from $22.50 to $21.50. There is no stock split. No re-organization...Nothing that would indicate the strike price of these options needed to be changed.
I called FHI to see if they knew anything about this. They don't. I called TD Ameritrade. The guy I talked to said that shares of FHI went ex-dividend on Nov. 5th, and that would cause a drop in the strike price of options. I implied he did not know what he was talking about, especially since the dividend was just the regular dividend of 27 cents. I asked him to bump this up to a higher level, and that I was not happy at all. They should get back to me soon.
I did see that there are April call options with strikes of $21.50. I also double-checked on the options I sold in October. They were definitely the April $22.50 options.
If these get called at $21.50, I'm going to lose $100 per option. Needless to say, I'm pissed.
Anyone have an idea what happened? I'll call FHI back to see if they can shed any light.
No. of Recommendations: 0
NEVER MIND....as the late gilda radnor used to say in one of her skits on Saturday Night Live.
I did a quick search for press releases from FHI and found this:
https://stage-services.federatedinvestors.com/teamsite-file-...
They are issuing a special dividend of $1, which is probably going to be considered a return of capital. Thus, the reduction of $1 in the option strike price. It does piss me off that the person I talked to in FHI's investor relations department did not have a clue about this.
No. of Recommendations: 0
