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TaiPan

TaiPan
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  • If Apple Declares A Dividend, Watch Those Put Options [View article]
    Thanks. I'm just starting to learn about options.

    I just don't get the purpose of in-the-money options. If you sell a covered call, in the money, won't the buyer exercise right away? Why would he wait?

    On the other hand, why would he not just buy the stock, since the premium plus strike price almost always equal the market price?

    And if you sell an in-the-money put, again won't the buyer exercise right away?

    .
    Jan 18 08:44 AM | Likes Like |Link to Comment
  • If Apple Declares A Dividend, Watch Those Put Options [View article]
    To confirm, a point I was not aware of, if you sell a put (not exercised yet) you pay the dividends anyway? To whom, the put buyer?
    Jan 17 08:52 PM | Likes Like |Link to Comment
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