I have DO and have sold Mar 80 calls for the stock. I was notified by my broker today that my Mar 80 calls are now Mar 78 1/8 calls. I understand that this is the amount of the special dividend $1.875 but I have never heard of options being adjusted by dividends.

Is this permanent or temporary until the dividend is paid?

I did this covered call strategy with the expectation that I would get two dividends of $2.00 plus $80 for the stock in Mar assuming DO is above $80 then.

If I thought I would get less than $80 at expiration, I would never have done it.