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The date the company checks its shareholder records to determine who receives the dividend. Typically 1 business day after the ex-dividend date under T+1 settlement.
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Key takeawayRecord date is administrative. For options traders, ex-dividend date is what matters — that's when assignment risk spikes on deep-ITM short calls.
💡 Why It Matters
Record date is when the company checks who owns shares for dividend payment. For options traders, the ex-dividend date (1 day before) is what matters — that's when early assignment risk spikes.
⚙ How It Works
Under T+1 settlement: if you buy stock on the ex-date, settlement occurs the next day (after record date), so you don't receive the dividend. You must own shares before the ex-date to be on record.
📋 Example
Record date: April 11. Ex-dividend date: April 10. To receive the dividend, you must own shares before April 10. Options assignment that occurs on April 10 gives you shares that settle April 11 — too late for the dividend.
⚠ Common Mistakes
Confusing record date with ex-dividend date. For options traders, only the ex-date matters. The record date is administrative — it's the ex-date that triggers early assignment risk on short calls.
❓ FAQ
What is Record Date?
The date the company checks its shareholder records to determine who receives the dividend. Typically 1 business day after the ex-dividend date under T+1 settlement.
Why does Record Date matter for premium sellers?
Record date is administrative. For options traders, ex-dividend date is what matters — that's when assignment risk spikes on deep-ITM short calls.
How does Record Date work?
Under T+1 settlement: if you buy stock on the ex-date, settlement occurs the next day (after record date), so you don't receive the dividend. You must own shares before the ex-date to be on record.
What are common mistakes with Record Date?
Confusing record date with ex-dividend date. For options traders, only the ex-date matters. The record date is administrative — it's the ex-date that triggers early assignment risk on short calls.
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