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7/15/19: Portfolio Analysis - How Dividend Risk Applies to LONG Calls

From Theory To Practice

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In today’s portfolio analysis, we spend the bulk of our time examining ORCL, and its upcoming dividend. Interestingly, we have a Long Call Spread, and while our Short Call is still OTM, our Long Call is actually ITM. This is a positive thing for our position, but it begs the question: how does dividend risk apply to an ITM Long Call?

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