The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be answering the question, “Should you avoid trading ETFs with dividend assignment risk?” We recently went through… In fact, we always go through this every three months or so for most of the ETFs that we trade. We go through this period where they go through dividend assignment. And so, as a result of that one or two or three-day period where it gets really, really active with positions, we have to analyze whether our positions are at risk of assignment or not. In some cases, they are and in some cases, they’re not. This means that in some cases, it might be more beneficial to close the position and move on and just continue trading it the next month. The question always pops up which is why I’m doing this podcast, “Should we just avoid ETFs with dividend assignment risk?” And the simple answer to this is absolutely not. Dividend assignment risk is but one small, small component of things that we