This video analyzes the combined strategies of covered-call writing with dividend capture, states Alan Ellman of The Blue Collar Investor.

Included in the video are discussions of ex-dividend dates, covered-call writing calculations with the BCI Trade Management Calculator along with the pros and cons of early exercise from the perspectives of both the option buyer and seller.

A viewer writes, “I bought NRZ to sell covered-call options and to capture a hefty dividend of 10% a year. Unfortunately, the option was exercised, and I missed out on the dividend but did receive a nice premium. I’ve attached the trade specifics. Could I have avoided early exercise and how?”

Learn more about Alan Ellman on the Blue Collar Investor Website.