Option Block 870: Crazy Calls and Even Crazier Dividends




The Option Block show

Summary: TRADING BLOCK VIX VVIX VXX ODD BLOCK UNIT PUT LOVE MRNA CALL SALE MDT CALL LOVE MAIL BLOCK NLOK IS PAYING A 12 SPECIAL DIVIDEND WITH EX DATE OF FEB 3RD, SO WHY ARE THE PUTS SO CHEAP? IF THE STOCK IS AROUND $26, WOULDN'T THE 25 OR 26 PUT BE SELLING FOR MORE THAN A BUCK IF WE ASSUME THE STOCK WILL DROP BY $12 AFTER THE EX DATE? WHAT IS THE OPTION STRAT I CAN TAKE IF THE CALL OPTION I BOUGHT DOES NOT GO AS PROJECTED, THAT IS, THE STOCK PRICE GOES DOWN INSTEAD OF UP?