So I made a dumb mistake, just wanted to share it to hopefully keep others from doing the same.
So I recently did a vertical call spread on SPY because I’m a pussy and I wanted to limit my downside risk. Well my short leg was exercised on the 20th and by the 21st the price had dropped so my long leg was OTM and I bought the shares and long story short I made a bit of money in total, or so I thought.
What I didn’t pay attention to was that the stock’s ex-date was the 21st so for my short leg exercised on the 20th, I had the short position so I have to pay that dividend, 1.41 on 100 shares for $141. And I bought the shares on the 21st so I don’t get shit. Not too big an issue but definitely a lesson learned, so watch out for dividend dates, don’t be dumb like me.
TLDR: I got f*cked having to pay the dividends for my option, don’t make the same mistake