macrocephalopod

well, technically it would not be a difference of implied. Certainly the dollar value of the extrinsic would be different.

another issue is that typically deep options are quoted wide, and, when i used to play, low (meaning expected sellers). so if you use the mid of a deep option to calc implied, it can give wacky results -- esp for american options. if i'm calc'g implieds, i ignore itm options

Last time I looked there were very few reasons to actually exercise early, among them saving on funding for deep ITM puts, and calls right before large but non-special dividends…

For an American Call with dividend approaching, selling it then buying the stock is the same thing as early exercise to obtain the dividend. If you hold it you will lose by the dividend amount. If you Early EE/Sell it then buy the stock, you will break even by dividend amount.

i think u got lazy and didnt read the thread ;)

Ah I read it but what I understood was “the IVs are wrong because your broker has crappy input data and doesn’t care” but I think what you meant was “the IVs are wrong because the options are American and there are dividend/borrow effects, and your broker uses BS naively”