I am trying to understand non-qualified dividends as well. It seems there is another factor to consider, if the option is in the money or not at the time of the ex dividend date. I am having trouble determining if this rule is based on option (sell covered call) being in money at the time it is opened to result in the non-qualified rate, or if the call moves into the money at some time before it expires pays an ex dividend during the time it is in the money. Any assistance would be appreciated
