<< More Innovative Planning Tools

Fight Dividend Skimmers

Dividends are paid every 3 months to whoever owns the stock on one particular date, the "Ex-Dividend Date". On occasion the call will be executed just before the ex-div date, so the call-writer will lose the dividend for that entire quarter. So, for those options which will be open on an ex-div date, the option writer has to be sure that the strike price is far enough out-of-the-money that a skimmer couldn't make money by calling the stock.

This program identifies the option expiration months for which one should select a strike price such that he would make a profit greater than the dividend if the stock is called.

These services are provided as is, with no warranty of any kind as to usability or accuracy. The user assumes full responsibility for any losses incurred by use of these services.
© 2011 Harvey S. Frey
Enter the stock symbol of a company that does pay dividends (e.g. PG, JNJ, WHR)