We regularly purchase OTC S&P500 options from dealers. We price options first and traded them later when our investable cash flow come in. I understand market variables will move and executed cost is usually different than our original pricing. Now, I'm trying to do some kinda of attribution analysis on this: arlight, for this trade, the cost is 30bps higher than the pricing we got about a week ago because vol and skew changed by this much and that worth 12bps. LIBOR is x bps higher now which translated to another 18bps.... But I don't how to interpret change of implied dividend. I solved implied dividend using call put parity. And it does change from time to time although not a whole a lot. What usually drives implied dividend to move around? Is this thing more volatile in the first month of each quarter when companies announce earning and div? Related question, does any1 hedge div explicitly? I thought one need to compare implied div and realized div to caculate their P/L? Or this is just too minor and no1 really care for short term option (1yr - 2yr)

>> How do I interpret Lambda to my bossuse mime ?