Early Assignment Risk Calculator

Estimate the likelihood of early assignment on a short covered call. The model weighs moneyness, time value, proximity to ex-dividend, and days to expiration. A positive “Dividend − Time Value” near ex-div typically raises assignment risk.

Intrinsic Value = max(Current Price − Strike, 0)
Time Value (Extrinsic) = Call Price − Intrinsic
Early exercise before ex-div is likely when Dividend > Time Value and the call is ITM

This is an educational heuristic; markets and borrow/fees can affect real outcomes.

Covered Call — Early Assignment Risk

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