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Mehul_Sangani
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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?


Posts: 147 | Registered: Nov 2003  |  IP: Logged | Report this post to a Moderator
ron
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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.


Posts: 1 | From: Searcy,AR | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
   

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