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Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1205  
Subject: My covered $40 call exercises at $37.5??? Date: 12/21/2012 2:25 AM
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I'm a bit surprised.

Sold a covered call December 22 2012 strike of $40, on Las Vegas Sands (LVS).

Stock has been trading north of $40 recently.

Late November LVS declares a special dividend, like other companies have done due to tax laws. On 100 shares, they paid out $275 on 12/18. Normal dividend is usually $25.00

On December 21, my call option gets exercised....but at $37.50 instead of $40.

I'm stunned. Oh, the brokerage firm is Etrade.

I believe the dividend was just that...a dividend, and should not a capital gains distribution. Even if it was, shouldn't the option have been exercised at $40 ???
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Author: IlanBigfoot Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1119 of 1205
Subject: Re: My covered $40 call exercises at $37.5??? Date: 12/21/2012 12:51 PM
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Your contract was adjusted. When you hear about a special dividend, you will want go to either the CBOE or the company itself for information about it.

http://www.cboe.com/publish/ttstocksm/12-636.pdf

Las Vegas Sands Contacts:

Investment Community:

Daniel Briggs

(702) 414-1221

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Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1121 of 1205
Subject: Re: My covered $40 call exercises at $37.5??? Date: 12/26/2012 11:26 AM
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thanx much for the response and the link.

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