Dividends can have a significant affect on option premiums. When dividends increase it causes call option premiums to decrease in value and put option premiums to increase in value. Basically call option premiums have an inverse relationship to dividends. When a share goes ex-dividend the share price decreases accordingly by the amount of the dividend. This price movement is priced into the options value so it is very hard to profit from buying puts before the dividend unless you expect the share price to fall more than the dividend value.
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