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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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