Dividend date
文章来源: ZhangZhouDaTou2016-08-04 21:02:32

There are fund companies specialize on this - buying Calls, in money, for a few days, then exercise the option one day before dividend date, cash the dividend, get out of stock. By doing this, convert the short term gains ( need to pay short term tax rate ) to dividends which may qualify for "qualified dividend rate"; for high tax family, it may save 10% to 15% tax payment