> Do you receive dividends after buying an option?

Do you receive dividends after buying an option?

Posted at: 2014-12-05 
Do you receive dividends after buying a call option? Thanks in advance, ive never traded options before.

No. Think about it. You have an OPTION TO BUY SHARES. How can you get a dividiend. You only get dividends on shares. An OPTION is just that: an OPTION TO BUY SHARES.

Why am I shouting?? 'Cos it is SO SIMPLE and you are still asking the question!

Options are a derivative "investment". You do not receive a dividend if you hold an option. Dividends are paid by companies to their equity shareholders, so to be paid a dividend you need to hold equity shares in the company.

nope this doesn't work the way regular stocks do. I guess you're talking about binary options. You just get 90% of your investment if you guess the commodity trends right otherwise you lose all of it. My friend traded in them after gathering some tips from this DVD http://amzn.to/1ynhZSe but he couldn't really make much. These are mostly scams so I suggest you invest your money elsewhere.

A call option that pays dividends would be something like convertible preferred stock. All derivatives are available for a price. Want a call that pays you equity dividends? I can price that and sell it to you.

Do you receive dividends after buying a call option? Thanks in advance, ive never traded options before.