We all know that trading options is exciting, highly competitive, and can be very profitable. The key to long term and consistent profits in option trading is options education. The McMillan Mentoring Program, which is run by former Market Maker, white badge AMEX Floor Official, professional trader, and longtime MENSA member Stan Freifeld, can take your trading to the next level. To see where you stand, take Stan’s Options Challenge by answering his question on the first Monday of each month.
Every participant who answers this week's question correctly within 7 days will receive complimentary access to The Option Strategist Newsletter Volume 3.* Good Luck!
Stan’s Options Challenge: Question #11
The Board of Directors of XYZ Corp. has declared a .35 dividend to stockholders of record on Wednesday, October 15th, 2014. A trader currently owns 100 shares of XYZ and 20 November in the money Calls. On Thursday, October 9 she exercises 15 of the Calls and the next day exercise the remaining 5. The following Monday, October 13th, she sells 1,000 shares. On the payable date, how much of a dividend will the trader receive? Keep in mind that October 13th is Columbus Day, which is one of two annual bank holidays during which the stock and option markets are open but are not settlement days.
A) 0
B) $35
C) $210
D) $560
E) $735
Click Here to Submit Your Answer
*Answers must be received by 11:59 PM eastern time on 10/13/14. Participants may only submit 1 answer. The complimentary access to the download will begin after the conclusion of the 1 week period. Winners will receive an email containing a unique coupon code for the product.
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