This video by Alan Ellman of The Blue Collar Investor analyzes the combined strategies of covered call writing with dividend capture.
Included in the video are discussions of ex-dividend dates, covered call writing calculations with the BCI Trade Management Calculator, along with the pros and cons of early exercise from the perspectives of both the option buyer and seller.
A viewer writes in and asks, "I bought NRZ to sell covered call options and to capture a hefty dividend of 10% a year. Unfortunately, the option was exercised and I missed out on the dividend but did receive a nice premium. I’ve attached the trade specifics. Could I have avoided early exercise, and how?”
Learn more about Alan Ellman on the Blue Collar Investor Website.
