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Tag Archives: ex-date
dividend capture and covered call writing

Combining Dividend Capture with Covered Call Writing: Pros and Cons

Why not use covered call writing with only dividend-bearing stocks to generate three income streams; option premium, share appreciation to the (out-of-the-money) call  strike plus the dividend itself? This article will explore the pros and cons of this approach to covered call writing.   Strategy theory We screen for stocks that have ex-dividend  dates  (also […]

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ex-dividend dates and option-selling

Ex-Dividend Dates: Rules for Standard and Special Dividends

Dividends impact option premiums. When a dividend is distributed the cash holdings of a corporation is decreased and therefore the company and its stock are worth less. The eligibility to receive the dividend depends on several factors including the size of the dividend. First, let’s define some terms: Types of dividends Standard dividends: A distribution […]

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