The Options Box

[bbgold]

RGC update
Looks like my mistake on that one. I talked to my broker and he says that the strike price for the options can be adjusted for the dividend payout if it exceeds a certain percentage of the stock price. In effect the strike price of the 22.50 contracts has been changed to the 17.50 strike price. I guess that the old saying "If it is too good to be true it probably is" holds here? I hope that no one had any sizable positions. I talked to someone at my brokerage about buying the stock and hedging with the Puts before but did not hear about the strike price on the contracts being adjusted before. I hope that everyone else reviewed the trade with their broker, UGH :^(