Early exercise + dividend capture: Did I miss obvious $?

Discussion in 'Options' started by d0rian, Oct 25, 2016.

  1. Kibitzer

    Kibitzer

    It's fine. With the unassigned contracts, I'm getting someone's juicy dividend lunch, but not for free with the overnight near-ATM covered call risk. I understand I have to do a risk assessment. If I really didn't want to deal with it, I'd just buy back the short calls and sell the stock. Thanks.

    Edit: I just wanted to mention in the thread that non-assignment (div > put premium) happens to me often when the strike is close to the money, and I don't know how to take a nearly risk-free advantage of it because I don't know what percent will be assigned.
     
    Last edited: Oct 28, 2016
    #21     Oct 28, 2016