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Dividend Risk

DIVIDEND RISK AFFECTS SHORT CALLS If your portfolio contains any short call options, then there is a chance that you may be forced to sell 100 shares (per contract) of the underlying and pay the dividend on the payable date. As a result, your account will be short the stock and owe the upcoming dividend. However,

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Stock Option

What Is a Stock Option? A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. There are two types of options: puts, which is a bet that a stock will fall, or calls, which is a bet that a stock will rise.  Options are

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