As I am bullish on the take-over of MON by Bayer, earlier in the year I bought a synthetic stock. I have cashed in and moved things about a bit since that time but my current position is Long C JAN18 115 Short P JAN18 120 Because the fastest gains were in the decaying price of the put side (I have sold 100, 110 puts before), I thought to add a twist to my strategy. The merger decision will not be ready before Q4 so end august I decided to sell some shorter options against the long position in the mean time Short C OCT6 117 Now it has to be said that MON options have been getting increasingly erratic in their quotes as time went along. I got 2$ for the short above but right now this option is quoted at $0.70/5.20 - there was a transaction at $ 2.85 Now when I chose this particular option I did know that MON presents results pre-open on 4th October. I reckoned that its fat volatility premium was at least in part due to the expectation that some news would be forthcoming on the merger. I dont think that is the case because the current state of the procedures makes this very unlikely. What I OVERLOOKED was that MON will go ex-dividend on 5th October - most likely ca. 0.50$. With the option ending the next day and no sensible quote in the system, I have the impression that I risk an early assignment in this case and should try and close out early. I have traded - as a private investor - for 25 years and had many many short option positions also over ex-dividend dates but never been assigned on anything. My concern here is the lack of a real market for the option - the buyer of the option in fact cannot sell it so exercise would seem to make some sense. What's the view of the board - will the buyer exercise on 4th October before the close or keep the option open? Obviously if the stock tanks on earnings the question becomes moot but I think it will do nothing and continute to gradually appreciate towards Bayer's bid price of $128 by end of year.