You need to find a trading partner to cross them. It's actually pretty easy. It even has a name - "the Cap Strategy." Ask any reputable broker and they will tell you about it; and will take the other side for you (i.e. they are the "trading partner"). Def true that it's not a great strategy anymore. Under no circumstances do I recommend it.
I must be fried from a really hectc day cuz I'm missing something. This is a deep ITM write against long stock placed as a net buy/wite order (what you call a spread) ? The $2.60 is the net cost of the CC?
Let me help you... The chances of not being assigned on a call like that when there is a significant dividend in play are very near zero
If this reply was for me, my question was about what the components of the position were not what happens later. If not for me, I'll wait for another reply. (sitting here drumming fingers)
What do you think? http://www.investopedia.com/printable.asp?a=/articles/optioninvestor/04/021104.asp
Yea spin, I always correct all your mistakes because you clearly know nothing about derivatives and I am here to school you. LOL
what rule is this? Hard to imagine any retail firm allowing clients to do this, especially an online firm? If one could do this, is the dividend not factored in to the price of the option?
$2.60 is the total out of pocket cost for 100 shares - 1 call option $2.50 strike. So you buy 100 shares of stock X for $17.25 And sell $2.50 call strikes against it. If you do this simultaneously, i.e. not legging in, you will have to pay more than the break even $2.50 price point.