We all know that stocks that pay good dividends usually drop in price about the price of the dividend payment. How does this effect options prices. Is there an opportunity to trade options near the ex dividend date to capture a large swing in the movement in the price of the stock. The ex dividend dates can be found in this link.
Ex Dividend Dates
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One great tax idea is to buy a substantial amount of stock right before the ex dividend date collect the dividend and offset other short term capital gains with the loss taken by selling the stock after the ex dividend date.
ReplyDeleteThen you only have to pay tax on dividend income which is only 15%