STRT ex-dividend on 9/12 (2.4%, special)
Strattec Security, a manufacturer of locks, will pay a special dividend of $1.150 on Oct 1st if you own the stock at market opening on Wednesday, September 12. That’s 2.4% of the share price of $48.290. This includes a first-time quarterly cash dividend of $0.15, plus a special one-time cash dividend of $1.00 per share. Watch out for the low liquidity. The stock has been on a downward trend since announcing disappointing Q2 sales in July.
August 30th, 2007 at 11:45 pm
Hi,
I just discovered this beautiful site and have a question hope someone could answer me
In case of a big dividend, say 3$ the stock goes down at least this 3 bucks on ex-dividend day.
Is this why shareholders take the bucks and selling the stock? I think so……
I have the idea to buy puts on the stock, do they follow the chart when the stock get´s down?
If so, a put want to be a wonderfull thing to make money on dividends…..
Dirk
Berlin/Germany
August 31st, 2007 at 12:42 pm
i have used that idea and made money. yes, it does work sometimes. it worked with ras last div they payed. keep in mind the company wasn’t doing to well to begin with. what i do is buy the put option about a day or two before dividend is payed. you MUST i repeat MUST be aware that if you can not sell you options before expiration and they are “in the money” they will be exercised. if they are exercised you will be liable for buying the stock at the market value, and pay the div that the stock is paying. you can seriously get hurt. this happened to my partner. Another thing to keep in mind is the volume of the options you looking into, also the open interest. you should make sure there are enough buyers to sell your puts once youve made your money. lastly, sometimes after a div is paid, yes the stock will drop the amount paid, but a lot of times the stock will open lower with no change in the ticker. for example if stock x is trading at 20.00. a div of 3.00 is being paid. the stock the next day will open at 17.00 but the ticker will not show a change it wont be in the red. quite strange. i noticed your from germany. on the us stock exchange you can buy,sell, or exercise a stock option at anytime. germany may be different look into it. hope my input helped.
good luck!
erik
August 31st, 2007 at 5:45 pm
I use put a lot too. They get adjusted as well (I think it is described somewhere in this site), but the formula is complex it seems. The best way to make money is really on the momentum (right before ex-dividend works the best for me)
September 1st, 2007 at 12:19 am
a big thank you, guys
answering my question. Here in Germany our Put an´Call Options are the same as yours in USA, we can
sell them right away.
so here´s one more question.
I discovered a company which stock quote is now around 15$ and they will pay an Special Dividend
of 9$ !!!!! I think within the next couple of month, the announcement must be comin´soon.
I think this this must be a burner for a Put Option, do you think so too?
So my idea is to buy a Put Option (at the German market, for this company I found Calls and Puts here in D)and sell it on ex-dividend day when the chart will go down these 9 bucks. I think the Put Option must go up like a rocket…. do you think so too? because the german chart is following your us chart when opening at the states…
Best wishes from Berlin
Dirk
September 2nd, 2007 at 6:02 pm
i think you found a great stock to purchase put options on. just keep in mind that the stock may open lower with no change in the stock ticker, like i had mentioned before in the previous comment. sounds great! even if the stock opens lower, worst case scenario, sell the put options for what you paid for them. you would just loose the costs of commisions you paid. if you idea with this stocks works you can clean up. my suggestion would be to puchase a few on the money puts, and some more out of the money puts.
GOOD LUCK!
erik