Hi.
Been lurking these forums for a little bit, but haven't posted before, so ya! for first post.
But had a question, OptionsExpress has had a large up move today on the statement of a special dividend payout on Dec. 13th of $4.50 per share.
I want to play this with a option play. My though is any up movement this security makes in the next few days will be people trying to grab the dividend, and after ex. dividend on Dec. 13th most are going to sell out. returning it close to the point it opened at on 11/29/10.
My question is, I have not seen to many special dividends like this in my short year of trading, is this a reasonable thought about returns to something approximate to its level at yesterdays close, before the announcement.
Thanks for any input,
and
Happy Trading.
Attached the news.
Nov 29 (Reuters) - Online brokerage optionsXpress Holdings Inc <OXPS.O> said it will return about $259 million to shareholders as special dividend payout in the absence of "value-creating" acquisition opportunities.
The dividend of $4.50 per share will be payable on Dec. 27 to shareholders of record on Dec.13, the company said in a statement.
OptionsXpress, which had stopped its dividend of 8 cents a share in April last year, had hinted at a special one-time payout before the end of the year in its third-quarter post-earnings call.
The Chicago-based brokerage firm will fund the dividend payout with a $120 million term loan and available cash.
As of Sept. 30, the company had cash and investments of about $269 million.
Shares of the company, which have risen about 8 percent since its third-quarter results in late October, were trading up 10 percent at $18.55 before the bell on Nasdaq.
They had closed at $16.93 on Friday. (Reporting by Sweta Singh in Bangalore; Editing by Prem Udayabhanu)
(([email protected] ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: [email protected]))
Keywords: OPTIONSXPRESS/
Been lurking these forums for a little bit, but haven't posted before, so ya! for first post.
But had a question, OptionsExpress has had a large up move today on the statement of a special dividend payout on Dec. 13th of $4.50 per share.
I want to play this with a option play. My though is any up movement this security makes in the next few days will be people trying to grab the dividend, and after ex. dividend on Dec. 13th most are going to sell out. returning it close to the point it opened at on 11/29/10.
My question is, I have not seen to many special dividends like this in my short year of trading, is this a reasonable thought about returns to something approximate to its level at yesterdays close, before the announcement.
Thanks for any input,
and
Happy Trading.
Attached the news.
Nov 29 (Reuters) - Online brokerage optionsXpress Holdings Inc <OXPS.O> said it will return about $259 million to shareholders as special dividend payout in the absence of "value-creating" acquisition opportunities.
The dividend of $4.50 per share will be payable on Dec. 27 to shareholders of record on Dec.13, the company said in a statement.
OptionsXpress, which had stopped its dividend of 8 cents a share in April last year, had hinted at a special one-time payout before the end of the year in its third-quarter post-earnings call.
The Chicago-based brokerage firm will fund the dividend payout with a $120 million term loan and available cash.
As of Sept. 30, the company had cash and investments of about $269 million.
Shares of the company, which have risen about 8 percent since its third-quarter results in late October, were trading up 10 percent at $18.55 before the bell on Nasdaq.
They had closed at $16.93 on Friday. (Reporting by Sweta Singh in Bangalore; Editing by Prem Udayabhanu)
(([email protected] ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: [email protected]))
Keywords: OPTIONSXPRESS/
