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How to Sell Options for Additional Income
If the stock just goes through the roof and that call goes so far in the money, you would be at risk of losing the dividend. That's the reason I like to sell the call, buy the stock and sell the call just a couple of days before the X dividend date. And as long as it stays above that short call, I know it's going to get taken out. So, I don't usually have to worry about it at that point. But for the most part, I'll just let it go. I just kind of move on to the next the trade.