This trade was actually executed on Tuesday 10/25/16. I didn’t get a chance to write about it until today.
IBKR goes ex-div on 11/29/16, which is 11 days after this contract expires. This particular stock isn’t exactly a conventional dividend growth stock. The dividend has been the same ($0.10/share) for the last 5 years, with the occasional “special” dividend sprinkled in occasionally.
It doesn’t all have to be about DGI you know.
Anyway, the premium on this trade is the equivalent of nearly 3 quarterly dividend payments. As I mentioned already, I will be eligible for the next quarter’s dividend if I should get assigned shares, and I like that.
SPL (Strike Price Logic)
Well here you go. I got the next strike price down, with a decent premium.
I’ll take it!