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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Mark Davis who wrote (11445)8/27/1999 7:26:00 PM
From: Ira Player  Read Replies (1) of 14162
 
The only time I've heard of Calls being exercised early are for issues where a dividend is pending.

People (in the pits?) with low transaction costs, can actually make money by buying the option, exercising it just before the dividend 'holder of record' day, (-3 days), sell the stock as soon as the dividend has been captured.

Otherwise, extrinsic value is destroyed by the exercise.

Ira
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