Dividends are usually quarterly distributions of cash to shareholders of stock. This distribution represents a portion of the stocks earnings, and many investors view dividend stocks as great long term trading vehicles.
In the options world, dividends can put us at risk of being assigned on any position that contains an ITM call that has less extrinsic value than the amount of the dividend. Check out the videos below for more information on managing/avoiding dividend risk.
Managing Dividend Risk
Dividends in the Major ETFs
Did you find this article helpful?