That doesn't sound right, but I don't know the details. An option owner doesn't own the stock until the option is exercised and settlement occurs. The dividend is paid to owners of the stock as of the x-dividend date. I've never had any stock called, but probably will lose some Abt since all my calls are in the money now. There is the chance that the earnings will not meet expectations and the stock goes below 50 on the May expiration date...we'll see. They can have the stock, I want to diversify; on the other hand I can hold the stock and sell calls again...either way works for me.