Dividend Capture with Options
Learn options strategies around dividend dates including synthetic dividends, covered call timing, and put calendar plays.
What is Dividend Capture with Options?
Dividend Capture with Options Dividend-related options strategies exploit the predictable price adjustments and early assignment risks that occur around ex-dividend dates.
Understanding dividend impacts on options pricing helps avoid assignment surprises and identify synthetic yield opportunities.
Event Characteristics
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📈 Bullish Strategies
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⚖️ Neutral Strategies
💥 Volatility Strategies
Assignment Risk Warning
If you're short ITM calls on a dividend stock, expect early assignment the night before ex-dividend if: Dividend > Remaining Time Value
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Frequently Asked Questions
Can I capture dividends with options?
Yes, but with caveats. Deep ITM calls (delta > 0.90) act like synthetic stock and will be priced to include the dividend. If you buy calls to 'capture' the dividend, you're paying for it in the premium. True dividend capture requires owning actual shares.
Why do my call options get assigned early near ex-dividend?
ITM call holders may exercise early to capture the dividend. This happens when the dividend exceeds the remaining time value of the option. If you're short ITM calls on dividend stocks, expect potential early assignment the day before ex-div.
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