Are you asking me to kick you in the nuts daily, or demanding. Bend over, let me get a running start, lol. You're as stupid as they come...
Thank you for not attempting to educate me (and others). People like you with so many misconceptions are a danger to those who are learning about options. What's ironic is that everyone here replying to you is disagreeing with you. That would tell you something if you were capable of thinking this through.
Pending dividends increase the amount of put premium and decrease the amount of the call premium. The dividend is priced in. But you didn't know that, right? The trading working out has nothing to do with the discussion of the equivalence of a short put and a buy/write of the same series. It's just a distraction from the facts.
Clearly I wasn't. But reading comphrension is clearly not your strength. Fortunately you don't need to "read good and learn to do other stuff good too" to open a piker Etrade account.
You're thinking is elementary. Fundamentally you are correct but go tell that to bid/ask dividends are built in.
Of course you would say a successful trade has nothing to do with it. FYI, making money is the bottom line in this industry. And losing money, you should line up newwirldmn, he'll teach you his position. We can all take a running start. Or you 2 can take turns kicking each other in the family jewels lol.
Yes it is interesting all the discussion for a covered call. It is as conservative as buying the stock, so not very conservative, in my opinion. Covered calls are for stocks that you think are in a lateral movement .If you think the stock is in an uptrend it is better to buy the stock, because you doesn't limit the possible profits from the uptrend. You are giving up a potential higher profit for a little downside protection. Yes usually you get the dividend but your stock will decrease by the dividend amount on ex dividend date. But you have the risk of not getting the dividend, because your short call could be early assigned the day before ex dividend date , what is very likely if it is enough itm. The maxim profit will be when the call is itm on the expiration day and you are assigned, and will be strike - spot price + premium + dividend But yes I supose it is a common strategy for people who can not sell naked options.
You are right. However, my market sentiment is over bought and I am not familiar with GPC. The setup looked good and I made a B/W. The stock price has risen beyond the strike price and the call maybe exercised before ex-dividend date. But I still made callPremium + capitalGains. Better than sitting on the sidelines. If you like buying call options, another suggested selling put options. By all means, post a live trade. Let's see how it unfolds. IMHO, they each have specific characteristics I didn't want to deal with in my setup. If the B/W went against me (close below strikePrice), I would have made callPremium + dividend. Then I would sell an OTM put, for current option expiry and maybe for next option expiry. And take another shot at sell otm call.