Or if I don't have the cash, I could just sell the call the day before dividen & buy back the call the next day for reduced price. Also I don't need to have a view that the stock will rally, if the stock goes down to 28, I would still make money by keep selling the 29 calls.
If I keep holding the call and not exercise, I would be loosing out because, I will not receive any dividend, stock will go down, and my call strike stays the same.
I don't know what "my call strike stays the same" means. I don't think you meant the call premium because then, everyone in the world would be buying ITM calls that don't lose money when the stock goes ex-div and shorting the stock that does lose $1.40 due to ex-div. Ahhhh, the FANTEX???
From all of your questions it seems you can use some learning on 'option and dividend' and how they relate.
What is the bid/offer of selling the call and rebuying it? What will you do with the short call? If your short call is not exercised against you will you hold the position to maturity or cut it after the dividend? You have a buywrite with the intention of holding to december it's a decent trade. If you are going to cut the position and then reenter it then it is a lot of extra commissions and bid/offer.
Don't want to hold the position itself, but I will gladly pay the extere 20-30¢ for comissions & spread to have only a 'fraction' of the risk
I'm not following. What is your plan with this position? Unwind the position before the dividend? Re-establish it and hold to Dec expiry? If so, why buy the position now unless you think the stock will rally > delta*30 cents.
I leave it to you to edumacate him as to why exercising his long call to capturie the dividend, selling the stock and buying the same call back does not reduce his risk. In one era and out the other
hold the call till teusday, exercise, sell stock on wensday. If dec call was not exercised buy back Jan call, hold call untill dec, get exercised in december. If agnce goes to $15 from now till dec, my loss is $2-$3 vs. $13 if I own the stock, for that I pay a little more comission. Clear enough?