How do Covered Calls impact the quarterly dividend, if at all?

Asked 4 years ago

I understand the premise. What is the risk? You end up selling your stock at a higher price, which is great, but can you have a Covered Call that might trigger AFTER ex-div date, to get the dividend? Can you help me understand this?

Osasere Okunloye

Thursday, June 24, 2021

You can set the expiration time to happen after the ex-div date. The real risk of covered calls is that you may lose your money if the stock price declines below the break-even point. Another risk is that you may not be able to participate in a high stock rise above the strike price.