I'm not sure which is more pathetic... Paying to see some titties shake at the Cheetah Club on Saturday night or posting replies to this board while being there. ROFL
Receiving a dividend does not provide Total Return (see sysdevel99's comment about ex-div share price adjustment). Covered calls and short puts (same series) are synthetically equivalent and provide a similar return. Pending dividends are priced into the options. As Bobbybax suggested, "Just sell a naked put....half the commissions." Less B/A slippage as well.
I see you don't understand my trade. Based on your comment, educating you would be a waste of time... LOL
Actually I'm not sure YOU do understand it. Like everyone said (knows) you'll make the same profit/have the same risk selling the 87.5 puts. You may get a better fill but for sure you'll pay less in commission. You "capturing" the dividend is a pipe dream - I know you're sold on this dividend aristocrat BS but have you ever though why people don't buy the stock the day before the dividend - capture the dividend and sell it right after ? It is because once the dividend gets paid your stock will drop the same amount. Anyway - keep trading and good luck.
I guess you don't understand bid/ask. Tell the institutions that place their trades your story. Analyze my trade and setup, notice the fill date is almost 3 weeks before ex-dividend date. Check the current price of the stock compared to the price i paid, notice it's up almost a buck. But a buck is peanuts to you. I guess it is if you're trading 1 contract. i could have close out my trade last friday and made $785 profit. And you would be still short put. Which put were you planning on shorting, each tick is $2.5. You may need to short ITM put to match my premium and capital gains. If stock is flat, assignment at a loss is s biatch. You'll never get it, go ahead and trade your way, and i will trade mine. I am not here to convince anyone, but you certainly are. I'm just posting a simple buy/write. If you have a better mouse trap; post your live trade and we'll compare results. GPC is beyond dividend aristocrat. To make the list a company has never reduced, and has actually increased it's dividend for more than 25 years.
Unlike European options and non-dividend paying underlyings, a short put and buywrite with a dividend paying stock and an American option are not strictly equivalent. You can construct scenarios where one earns more than the other.