AI
Monday, June 30, 2003 11:02:33 AM
RGC update
The X-date was moved to July 1st or 2nd, still not sure. RGC has failed to move higher than $24 and with a $5 dividend payout I would Anticipate that the price will drop a bit from here. Supposedly still time to buy to pick up the dividend, better check with your Broker, and the Puts to hedge the trade are considerably lower due to time erosion and low volatility. The July $22.50 Puts are trading .50 x .70. I do not own any of the stock but will see if the 22.50 Puts will be profitable on a drop in the stock price after the dividend goes X. Any kind of a market dip going into the 4th might accelerate that selloff, maybe. Was looking at it more as a 'buy the stock and hedge with Puts' play but will see how the Puts play out here. I have seen stocks like DOM have retraces after the Xdate and still recover quickly. DOM has an ongoing dividend though where the RGC dividend will be a one time deal.
Enjoy the Day Everyone! :^)
The X-date was moved to July 1st or 2nd, still not sure. RGC has failed to move higher than $24 and with a $5 dividend payout I would Anticipate that the price will drop a bit from here. Supposedly still time to buy to pick up the dividend, better check with your Broker, and the Puts to hedge the trade are considerably lower due to time erosion and low volatility. The July $22.50 Puts are trading .50 x .70. I do not own any of the stock but will see if the 22.50 Puts will be profitable on a drop in the stock price after the dividend goes X. Any kind of a market dip going into the 4th might accelerate that selloff, maybe. Was looking at it more as a 'buy the stock and hedge with Puts' play but will see how the Puts play out here. I have seen stocks like DOM have retraces after the Xdate and still recover quickly. DOM has an ongoing dividend though where the RGC dividend will be a one time deal.
Enjoy the Day Everyone! :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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