How much does it cost to sell XYZ stock?

You could sell the XYZ January 60 put for $2 per contract, obligating you to pay $60 per share for XYZ stock if assigned—exactly what you wanted. But since you’re collecting $2 for the put, your net cost for the stock would be $58 per share (plus commissions and fees) if you are assigned.

What is the cost basis of XYZ stock?

The original cost basis in XYZ stock is $40,000. After the spin off, the customer gets 100 shares of PDQ, with a $20 per share value = $2,000. This is the PDQ cost basis, and it comes out of the XYZ cost basis. $40,000 XYZ cost basis - $2,000 PDQ cost basis = $38,000 adjusted XYZ cost basis.

When does XYZ declare a dividend?

On September 8, 2017, Company XYZ declares a dividend payable on October 3, 2017 to its shareholders. XYZ also announces that shareholders of record on the company’s books on or before September 18, 2017 are entitled to the dividend. The stock would then go ex-dividend one business day before the record date.