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!
>> Redeem Options Handbook Now <<
>> Click here for the Simplified Chinese version <<
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