Does it ever make sense for the buyer to exercise the call when it is OTM, for example, CVX stock and the Feb 75 call? The stock goes ex-dividend on Feb 14 ($0.52 per share dividend). Thanks!
Does it ever make sense for the buyer to exercise the call when it is OTM, for example, CVX stock and the Feb 75 call? The stock goes ex-dividend on Feb 14 ($0.52 per share dividend). Thanks!
Nope. The holder of the call would be better off buying the stock in the open market at a price less than the strike price if he really wanted the dividend.
