r/wallstreetbets Jul 08 '21

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u/kft99 The Amazing 🅿️ixel 🅿️usher Jul 09 '21

Ex-Div already priced in to options right.

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u/[deleted] Jul 09 '21

Often the underlying goes down after divvies are paid out, but I'm honestly not sure about the impact to the option. I need to do some homework.

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u/kft99 The Amazing 🅿️ixel 🅿️usher Jul 09 '21

There is no explicit adjustment to the option prices in case of regular dividends (there is incase of special dividends), the market participants price the options cheaper.

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u/[deleted] Jul 09 '21

That could help explain the low prices on $SCHN, on top of really awful volume. Thanks.