doctorpot1
Excellent Contributor
joined discussion · Jun 15 15:02
BABA options changes to note, special dividend included in BABA1
$Alibaba (BABA.US)$has announced a Special Cash Dividend of approximately $0.66, less fees, if any, per$Alibaba (BABA.US)$Share. The record date is June 13, 2024; payable date is July 12, 2024. The ex-distribution date for this distribution will be June 13, 2024.
As such there are some adjustment to the options contract effective June 13, 2024. BABA1 will include the special dividend, where as BABA will not.
doctorpot1
OP
yoongmy
:
based on theocc it only adjust the deliverables. can see more details at the source link.
It only account for special dividend, normal dividend usually is not counted. That's why sometimes people exercise the options early to get the dividend.
MonkeyGee : Thanks for the info. Does this impact options after June?
yoongmy : I thought it suppose adjust the contact price? Total dividends is 1.66 leh, but the article only mentioned about 0.66 special dividend.
doctorpot1 OP MonkeyGee : all option contracts now will have BABA and BABA1, so when trading need to select the correct one
doctorpot1 OP yoongmy : based on theocc it only adjust the deliverables. can see more details at the source link.
It only account for special dividend, normal dividend usually is not counted. That's why sometimes people exercise the options early to get the dividend.