Forumsee logo
Forumsee » Finance and investment » Stocks and Funds » Read message
RSS: Subscribe to RSS

Dividend risk in trading spreads?

Options | Elite Trader - www.elitetrader.com
Hi,

I am new to spreads, I have got one successful vertical where every leg remained OTM. But whenever I lock in a spread for analysis, the thinkorswim platform has a comment, "Max Loss: $xxx.xx (not including possible dividend risk)". I do not understand this.

1) Can a stock get assigned to you if you sold a vertical spread and the final stock price ended up in between your sell/buy brackets?

2) If it's possible for a stock to be assigned to you in the scenario above, what happens if you don't have money to cover underlying contracts?

THANKS

 
Date: Jun 18, 2017   


Last videos:

Chinese real estate investment
Chinese real estate investment
Chinese real estate investment
Chinese real estate investment
How To Get Followers On Facebook Instagram Yoytube Twitter Free For Busines
How To Get Followers On Facebook Instagram Yoytube Twitter Free For Busines
The art of adjustment
The art of adjustment
Ameriprise Mistake-Need Advice on Vanguard Allocations and Planning
Ameriprise Mistake-Need Advice on Vanguard Allocations and Planning
2017 Economic Prediction/Discussion
2017 Economic Prediction/Discussion
10 Things You Didn't Know About Everyday Objects
10 Things You Didn't Know About Everyday Objects
One stop shop for FREE fundamental analysis links
One stop shop for FREE fundamental analysis links

Cars ·
Travel ·
Pets ·
production-frontend