Supplemental Trade Watch Update
Wed, Sep 8, 2010 | Frank
As of 2:35pm edt, the premium in the KO Sep 57.5 calls was about $0.25—still well below the $0.44 second-quarter dividend. It’s a little early for a dividend arbitrage play, but we want to make sure we avoid assignment, just to keep everyone on the same page. Absent a big sell-off/jump in IV, we’re planning either to close our call position at the 57.5 strike or to roll it up in the last hour of the session today, depending on our portfolio delta.
Tags: dividend risk, KO, Supplemental Trades
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