Attention, those of you who own Southern Copper Corporation (SCCO): SCCO has made a special distribution of shares to holders of the position. The distribution occurred on the date of payment for the most recent dividend for SCCO, August 26th. In addition to the regular cash dividend of $0.60 per share, holders of SCCO received 0.0056 shares of SCCO for every one share of the holding that they owned on the date of record, August 9th.
As a result of this share distribution, owners of SCCO will likely have noticed that they now have an odd lot of shares of the position. A person who previously owned 200 shares of SCCO will now own 201 shares, for example.
At this time, we are not recommending immediate action on SCCO. First, we need to wait until the options that we sold on SCCO for this month expire; if any or all of the calls are assigned, it will likely be necessary for the extra shares of SCCO to be called away along with those that we purchased regularly in the market as part of our normal trading.
Prior to Trade Day, we will adjusted your SCCO position for the additional shares. We recommend holding the ‘extra’ shares until the position closes. The share dividend is part of SCCO’s normal quarterly dividend plan. AutoPilot will sell options over 100 shares as usual. After the purchased shares are all called away, we will sell any remaining odd lot shares to officially close the position. Thank you for your assistance and cooperation with this unique Snider Method position.
