Deeply frustrating – I recently made the following Covered Call trade on Verizon Inc (VZ):
- Bought: 1000 shares of VZ at $36.90
- Sold: Ten (10) Jan 27, 2023 Calls at $0.66
- Strike Price: $38.00
- *Premium Collected: $660.00
Someone was paying attention and early exercised the in-the-money calls to take my Verizon Stock – stock goes ex-dividend on January 9th, 2023. Strange thing is the date of the trade shows it happened on the 9th – which is tomorrow?
Anyway, should have seen this coming, the dividend amount ($650) was much larger than the time value remaining in the call’s price – so this made sense to exercise the option. I will be watching this since the transaction date is showing January 9th, 2023 – but I suspect I lost the dividend. Made $1,760.00 on the trade – so it is not all bad.
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