This was spawned from another thread on the stock forums. ***This objective is purely for the sake of dividend capture*** ((This is not a debate over whether writing naked puts is superior than covered call writing. We already know that it is, especially when utilizing a ton of leverage beyond your buying power )) Hypothetical scenario/proposal: If you have a high quality dividend paying stock trading below $20 range. And you wrote one year out $2.50 strike calls against it. And did NOT leg in, rather purchased a spread for a debit of say $2.60. Would those shares just get immediately called back from you. What are the chances of you holding on to them for the duration?? When you are so deep in the money anyways at that point, is that dime extra gonna matter anyways VS. say you were able to leg in and get the spread for a debit of $2.45 or $2.50. Would your chances be any better of keeping the stock and capturing the dividends?? The real incredible compounding fact on paper at least about this strategy is to see how it works. Lets say the dividend based on the stock price is 4%. Thats assuming you pay $18 per share. But when buying it for a $2.50 or $2.60 debit, you're saving $15.40 per share, because thats the call premium you are pocketing. So that 4% dividend now turns into a 27% annual return. But I am suspecting that the shares are immediately called from you because of this fact.