If you buy calls or puts and decide to do what the option gives you the right to do—buy stock for long call options or sell stock for long put options—it sets off a process called “exercise and assignment.” Normally, this isn’t the road most traders go down. Rather, most ...
You can potentially avoid this by closing any position that includes a short call option at any time before the end of regular market hours on the trading day before the ex-date. Robinhood may take action in your brokerage account to close any positions that have dividend risk the trading ...