This is more complex than I thought! After I researched about the effect of holding shares short on the ex-dividend day, I realise that there are many things happening. Basically, I have to pay the dividend to whoever owned the shares that my broker lend me (without the lender knowing). So, on the ex-dividend day, the price needs to drop more than 60c for me to actually make a profit! Otherwise, I may have a loss if it does not drop 60c. There are several parties involved. While I get to keep the premium and whatever profit I make when I cover the short position, I have to pay the dividend to someone else without that person(s) even knowing about it. I guess we all learn something new each day
WBC Price at posting:
$23.20 Sentiment: None Disclosure: Held
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