Understanding Dividend Distributions

08/17/2015 8:00 am EST

Focus: OPTIONS

Alan Ellman

President, The Blue Collar Investor Corp.

In a video follow-up to his article that was featured last week, options expert Alan Ellman, of TheBlueCollarInvestor.com, offers a question and answer between him and a subscriber in which he goes into further detail regarding standard dividends and special dividends.

Question: On May 15 I received a $0.40 dividend from Costco (COST) but on February 27 the dividend was $5.00. Why is there such a big difference in the dividend amount and how do these effect our option trades?


By Alan Ellman of TheBlueCollarInvestor.com

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