pz1975
Active Member
Looks like this was actually too good to be true. I was digging more and the SSSS dividend is a type of dividend called a “special dividend” and thus option contracts will be adjusted by the same amount as the dividend. This eliminates the arbitrage and there is no easy profit potential here since the SP will also drop the same as the dividend.Yeah, Aug 17 is ex-date so must buy before then (on or before the 16th) to settle by the 17th record date. I mistakenly offset the offset.
Good point regarding not counting on dividend cash to close position.
Option contract adjustments - Fidelity
Learn about certain events that could trigger an adjustment in an options contract.
www.fidelity.com