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Strategies & Market Trends : cash flow investing for retirement
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To: deeno who wrote (4)7/21/2011 7:32:37 PM
From: wilywillyRead Replies (1) of 94
 
deeno,
Whether a call gets early assignment or not depends on the dividend value vs. the price of a put to protect the purchase at the strike price.

Here is a post that describes the scenario in detail:

Message 26927544

I have followed this guideline since reading that post, and have found it to be 100% reliable, in my experience. In cases where I previously would have unnecessarily rolled out a covered call to avoid early assignment by "dividend capture", I have compared the dividend to the put cost, and sat tight if it's less.

Thanks, kaka!
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