Best book trading stock options dividends


Book options dividends trading best stock


Many traders think of a position in stock options as a stock substitute that has a higher leverage and less required capital. However, options have different characteristics than stocks, and there is a lot of terminology beginning option traders must learn.SEE: Options BasicsOptions 101Two types of options are calls and puts.

When you buy a call option, you have the right but not the obligation to purchase a stock at the strike price any time before the option expires. Best Picks The Best Online Stock Trading Brokers of 2017 We have reviewed this category for 10 years. Options involve risk and are not suitable for all investors. For more information, please review the Characteristics and Risks of Standardized Options brochure before you begin trading options.

Options investors may lose the entire amount of their investment in a relatively short period of time.Multiple leg optionsSome stocks pay generous dividends every quarter. You qualify for the dividend ifyou are holding on the shares before the ex-dividenddate.Many people have triedto buy the the shares just before best book trading stock options dividends ex-dividend date simply to collect the dividendpayout only to find that the stock price drop by at least the amount of the dividendafter the ex-dividend date, effectively nullifying the earnings from the dividenditself.There is, however, a way to go about collecting the dividends using options.

On the day before ex-dividend date, you can do a covered write by buying the dividendpaying stock while simultaneously writing an equivalent number ofdeep in-the-moneycall options on it. The call strike price plus the premiums received should be equalor greater than the current stock price.On ex-dividend date, assuming no assignmenttakes place, you will have qualified for the dividend.

While the underlyDividendInvestor.com is the most powerful dividend-screening tool available today. DividendInvestor.com is the most powerful dividend-detecting resource available today. It contains the critical, time-sensitive data you need for income investments such as Common Stocks, Royalty Trusts, ETFs, CEFs, REITs, MLPs and ADRs. And gaining access to all of this only takes minutes. Plus, if Better Together.

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Book options dividends trading best stock

Best book trading stock options dividends


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