Subject: Re: OT: Hershey
By buying a call instead of stock you are also foregoing the dividend. For the Jan 2026 call, you are foregoing 9 quarterly payments. The current quarterly dividend is 1.19% and Hershey usually has a 10% dividend growth CAGR.

Taking the after tax impact of foregone dividends gives me an option cost of 6% and an implied borrow interest rate of 5.5%. Your results may vary based on your tax rate on dividends.

This is still a very low interest rate, as you can currently own close to that on very safe treasury money market funds.