Dividend capture with exercise

[turkeyneck]

I want to sell front week OTM CC but concerned about exercise risk as the stock is about to go ex-dividend mid week. As a rule of thumb, is it true that it doesn't make sense for the long to exercise early when there's still theta on the table even if the call is ITM? My goal is to keep the stock, get the dividend and get the premium for 100% gain at the end of the week. Rinse and repeat next week. Thanks!

 

[rmorse]

OTM calls don't get assigned early. ITM are always at risk of early exercise. They are of value to the long call owner if the Dividend is larger than the value of the put on the same strike, minus the cost of carry.

 

[Pravin Choudhary]

Dividend capture is an investment strategy where you purchase a stock prior to its ex-dividend date and then hold it until the ex-dividend date or later so that you will capture the dividend.
Earnings risk is the extra volatility many stocks experience when earnings are released.