Dividend risk in trading spreads?
I am new to spreads, I have got one successful vertical where every leg remained OTM. But whenever I lock in a spread for analysis, the thinkorswim platform has a comment, "Max Loss: $xxx.xx (not including possible dividend risk)". I do not understand this.
1) Can a stock get assigned to you if you sold a vertical spread and the final stock price ended up in between your sell/buy brackets?
2) If it's possible for a stock to be assigned to you in the scenario above, what happens if you don't have money to cover underlying contracts?
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