Options Fun Fact: Why Put Buyers Welcome Dividends | #OptionsHandbook EP023

Option_Lab
08-18

Dividends aren’t just good news for shareholders. In the options world, Put (bearish) buyers also benefit—even though they don’t own the stock.🙋‍♂️

📒 In The Options Handbook, the answer is pretty clear:

Ex-Dividend Day Pushes Stock Prices Down 🏦

When a company pays dividends, the stock price usually drops on the ex-dividend date.

Lower Stock Price = More Valuable Puts 📈

A falling stock price boosts the intrinsic value of Put options.

For long-term bearish strategies—especially on high-dividend stocks—higher dividend yields mean your Put contracts become even more valuable.

🛒 Want more insights like this? The Options Handbook covers key dividend effects and practical strategies. Now available in the Tiger Coin Center!

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>> Click here for the Simplified Chinese version <<

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • kooko
    08-18
    kooko
    Such an enlightening insight! 🏦📈
  • FranklinMorley
    08-18
    FranklinMorley
    Great insight
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