I have a covered call option on some of my INVN shares. The option does not expire in a month, but someone already claimed them before I have a chance to roll them out. INVN does not payout dividends yet. Why would they claim the shares way before the option expires? Any one has a similar situation? Any thought?
The only reason that would make any sense why someone would exercise options early is most likely due to the underlying call option has negative premium. For example, a $25 call option should have at least a $2 premium if the stock is at $27. If the premium spread is $1.80 -$2.00 the it would be more advantageous to exercise then to sell at at $1.80. Hope this helps