Assignment Risk, Short Calls, And Ex-Dividend Dates
If you are short call options in a stock or an Exchange Traded Product (ETP) like SPY or IWM you need to be aware of ex-dividend dates. If your calls are in the money, even barely, your options may be assigned right before the security goes ex-dividend—and then you may have a problem. For example, let’s say you hold a credit call spread position: short …
