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12/14/18 Portfolio Analysis: Dividend Risk in IWM?

From Theory To Practice

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After cleaning up our botched Ratio Spread from yesterday, we turn our attention to IWM. With the stock going ex-dividend on Monday, are we at risk for assignment due to a dividend? A quick analysis of the extrinsic value in the Short Call relative to the dividend amount shows that our risk is very low. Then, we adjust our Short Put in C that has now pierced our break-even point to the downside.

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