Is early assignment likely for this CC?

A

a529612

Long CVX stock @ 69.32
Short CVX Nov 70 Call @ .36

Ex-dividend is on Nov 15 for 0.52/shr

I expect it will trade around 70.5 or so by ex-dividend. Is early assignment likely for this CC? Thanks!
 
Is "strike price - dividend" a good rule to determine the price that it makes sense for the call buyer to exercise early?
 
Quote from a529612:

Is "strike price - dividend" a good rule to determine the price that it makes sense for the call buyer to exercise early?
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Sure, at that point, it's "free money", and as soon as dividend hits, the stock is going to drop anyway. It's unlikely someone would hang onto a short term near-money call through div-ex unless they just weren't paying attention. :-)
 
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