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Pro Tips · Jul 15, 2026

Covered calls before ex-dividend day: assignment in plain English

A covered call can be assigned before expiry, and a nearby ex-dividend date can raise that risk. Here is a beginner-safe way to separate intrinsic value, time value and dividend timing before surprises reach the account.

PRO#wheel#covered-calls#assignment#dividends#options-education
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Archival black-and-white photograph of traders working on the Chicago Board of Trade floor in 1973.
Photo: U.S. Department of Agriculture / NARA — Wikimedia Commons (public domain) · archival 1973 market context

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YieldCove Desk

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4 min read

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A covered call does not guarantee that the shares stay in the account until expiration. The Options Industry Council says a seller of an American-style put or call can be assigned on any business day. For a covered call, assignment means the shares backing the…

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