Corporate events such as stock splits, mergers& acquisitions and special 1-time cash dividends may change the parameters of our covered call writing and put-selling contracts. This podcast will focus in on a real-life example with OMF and a special 1-time cash dividend of $3.50 per-share.
A discussion of how and why the Options Clearing Corporation ensures that both buyers and sellers of calls and puts are made whole with no winners or losers results from these contract changes.
Final trade calculations are also assessed in this presentation.
Links mentioned in the video:
https://thebluecollarinvestor.com/minimembership/bci-investor-program/
https://thebluecollarinvestor.com/minimembership/bci-trade-management-system/
