Comments on: PGR ex-dividend on 8/29 (9%, special)

by: Sam

Wed, 22 Aug 2007 16:30:16 +0000

Well, yes, but the idea is that stock tend to drift down after exdiv as some people were waiting for the dividend to sell, possibly for its tax advantage or for short term trading.

by: Hammer

Wed, 22 Aug 2007 13:00:17 +0000

Hey,

If you short the stock, you are responsible for the payment of the dividend as the temporary owner of borrowed shares. In other words, if you short 1,000 shares at $22.00 prior to ex-dividend, you will owe $2,000 post dividend (1000 X $2.00) and will have a short position that is up $2,000 — so you will be net zero on the trade.

You need to study the markets more before trading.

by: Alan

Tue, 14 Aug 2007 04:45:03 +0000

There was a good run up on this stock… if you missed it, you may get lucky post exdiv. I’d go for a Put, just in case…

by: Dwight

Tue, 14 Aug 2007 03:27:16 +0000

But why short it if the drop in value is just the dividend you have foregone? You have to presume it will drop more than the dividend, I guess, but why?

by: Sam

Tue, 24 Jul 2007 16:44:08 +0000

Enough to short the day before.

by: Jackson

Mon, 25 Jun 2007 14:00:27 +0000

Previously Marcu raised the question “How may days in advance do I need to short a stock that has declared a special dividend?”. Could someone please answer that?

by: Rousu

Fri, 22 Jun 2007 18:14:25 +0000

When you go to the PGR web site, they talk about it as returning capital to the stockholders, though they do not specifically state what the tax categorization will be.
So ignore it if you are looking for dividends, until informed otherwise.