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

Asked 5 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?

Covered call Selling covered calls Dividend investing

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.