Will OTM option get exercised if stock goes ex-dividend?

T

turkeyneck

AAPL will go ex-dividend this Thurs and I have an open position in the 630 weekly CC. I think it'll move close to 630 by Wed. Do you think it'll get assigned if the call is OTM on Wed so the call buyer will get the dividend? Thanks!
 
Quote from turkeyneck:

AAPL will go ex-dividend this Thurs and I have an open position in the 630 weekly CC. I think it'll move close to 630 by Wed. Do you think it'll get assigned if the call is OTM on Wed so the call buyer will get the dividend? Thanks!
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NO. The 630 Puts X-div would have to be worth less than the dividend for anyone to consider that with the call.
 
A long call holder would only exercise if his option is materially the same as being long stock. That's not the case with your 630 calls.
 
I had a CC on XOM a few years back. It moved through the strike just prior to ex div, someone exercised and I was called away 1 day prior. Sound simliar? Why are you worried about it?
 
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