UPS Options Trade on Ex-Dividend Rally Setup

5 months ago

"UPS, our little buddy UPS here... Today, a little bit of a drop, but very explainable because today is ex-dividend date. So we are entitled to another dividend of $1.64. With this dividend, my break even will come down to $115. I'll take this."

The speaker describes an options trade setup for UPS. The stock is trading lower on the ex-dividend date, which provides a dividend of $1.64 that effectively lowers the break-even price to $115. The plan is to wait for a rebound in UPS prices and then sell calls to capture further premium, making it a tactical trade for options traders.

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