RE:QID

Posted by Jack Haddad on December 21, 2007 at 11:34 am

The 200 Dec strike 40 calls I wrote at .70/contract will expire worthless, and i will pocket the entire premium as the stock closes below the strike 40.  For those who are wondering why the shares are at 37.50, don’t be fooled.  Theyre actually 38.65.  Yesterday all proshares ETFS paid dividends.  However, the dividends will not be issued to shareholders till the 28th of DEC.  Therefore, the ETFS adjusted their shares lower while increasing their options’ premium higher to raise capital.  All in all, this complex adjustment will fix itself on the 28th.

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