Video Library

The Dividend Effect

Basic Pricing

This rebroadcast from the OIC webinar program will discuss "The Dividend Effect", a concept that an investor cannot afford to overlook. Tune in to learn about the effect that a stock's dividend can have on an option's price - and on your account.

(7:04) - Recap of Option Pricing
(14:13) - Impact of Dividends on Option Pricing
(20:50) - Early Exercise and Assignment Risk
(32:15) - What Happens When a Dividend is Reduced or Eliminated?
(33:57) - Special Dividends and Options Adjustments