Will the Ex-Dividend Date Cause Early Exercise?

Alan Ellman of TheBlueCollarInvestor.com shares a video to provide an answer to a question recently posed by an options trader.

Question: "Thanks for (TRN). I've been doing great with this stock since it was published in your stock reports. I recently sold the (July) $40 call option and noticed on the premium report that the ex-dividend date is July 11th and I'm worried that it may be exercised early. How can we tell if early exercise will occur? Thanks for all your information."

By Alan Ellman of TheBlueCollarInvestor.com