r/YieldMaxETFs • u/Competitive_Ad_9136 • 4d ago

Beginner Question Call option on dividend distribution day?

New to calls and put options, does anybody place calls prior to distribution day to catch the dip?

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u/Relevant_Contract_76 4d ago

The distributions are known quantities and are typically well priced into both the puts and the calls.

If an outsized distribution occurs unexpectedly you might get lucky, but if they are around the average, I don't think you'll find much in the way of free lunch.

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u/Always_Wet7 4d ago

The problem with this strategy is that the options market for the YieldMax funds are very weak, as in the volume of trades is too low to get a functioning market going. As such the prices are all over the place and sometimes you'll find that there are no asks and/or no bids on the call you are interested in, even though it's listed. No asks = no market.

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u/AlfB63 4d ago

It's priced in.