Options and Dividends: Understanding Early Exercise and Ex-D
People who trade options do so for a number of reasons: to target downside protection, to potentially enhance income from stocks they own, or to seek capital-efficient directional exposure, to name a few. But one common element shared by all option traders is exposure to risk.Consider dividend risk. If you trade options on stocks that pay cash dividends, you need to understand how dividends affect options prices, options exercise and assignment, and other factors in the life cycle of an option.To make a long story short: Failure to understand dividend risk could derail your strategy and cost you money.How Do Cash Dividends Work?Dividends, stock splits, mergers, acquisitions, and spin-offs are examples of corporate actions—things done by a company that require adjustments to the number
Shares of telecommunications giant AT&T(NYSE:T)tumbled
What happenedShares of telecommunications giant AT&T(NYSE:T)tumbled in Wednesday afternoon trading, despite the company reporting an earnings beat in the morning.Ahead of the fourth-quarter release, analysts had forecast AT&T would report $0.76 per share in adjusted earnings on $40.4 billion in revenue. In fact, it beat on both the top and bottom lines. Revenue came in just under $41 billion, and AT&T earned $0.78 per share on a pro forma basis.At the close of trading, AT&T stock was down by about 8.4%.So whatWhile it's true that the company "beat earnings," not all the news in the report was as good. For one thing, while revenue exceeded expectations, it was still down 10% year over year. Pro forma earnings, meanwhile, were ahead of expectations -- but only
NDRC: CN To Scale Up Anti-monopoly Measures, Curb Platforms'
China's National Development and Reform Commission (NDRC) introduced a construction scheme of modernized circulation system under the "14th Five-Year Plan", illustrating the Chinese government's determination to scale up relevant measures on combating monopolistic behavior and improper competition, reported The Paper.The NDRC further remarked that, concrete regulations on fair market competition will be outlined, in hope to safeguard the market order, facilitate the benign development of platform economy and shared economy, while preventing disorderly capital expansions, the report added.
KR-Biggest 1000 times than Sheng Siong get margin squeeze
The highest inflation in decades is hitting consumers and rippling through the food industry, from farm equipment to packaged food, grocers, and restaurants.At-home food costs climbed 8.6% and out-of-home costs rose 6.8% in February from a year ago. Wholesale prices are up even more, signaling continued inflation at supermarkets and restaurants. The producer price index for food was up 13.4% in the year ended in February, with grains and the beef and veal category rising 20% or more.In reacting to the surge in food costs, Wall Street has stuck with its usual playbook. Businesses like restaurants and packaged-food companies that are absorbing price increases have been hit, while farm-equipment makers, supermarkets, and food processors are seen as beneficiaries.So, which stocks look best now