Allstocks.com's Bulletin Board: Question abt dividend on options

This is topic Question abt dividend on options in forum Swing Traders at Allstocks.com's Bulletin Board.

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Posted by Mehul_Sangani on :

I'm sure lot of people here trade options. Me personally haven't dealt with option but trying to learn more abt it.

If I buy CALL option for certain company do I get dividend?

For example lets say if I buy 05 JAN 25 CALL option (currently trading at $0.30) for SLE (Sara Lee) will I be entitled to dividend of $0.75. If we do get dividend, I dont understand why dont many people use that approach.

Any inputs?

Posted by ron on :

quote:
Originally posted by Mehul_Sangani:
I'm sure lot of people here trade options. Me personally haven't dealt with option but trying to learn more abt it.
If I buy CALL option for certain company do I get dividend?
For example lets say if I buy 05 JAN 25 CALL option (currently trading at $0.30) for SLE (Sara Lee) will I be entitled to dividend of $0.75. If we do get dividend, I dont understand why dont many people use that approach.
Any inputs?

Only stockholders receive dividends-not option holders.