How do you value an option when the underlying will go ex-dividend during such period? Do all strikes have the dividend amount factored into the option price already? For example, the CVX Aug 85 Put is selling at .55/.65 bid/ask. CVX stock will go ex-dividend sometime in Aug with a 0.58 dividend. How much of that is reflected in the current .55/.65 bid/ask if you are thinking about selling put? Thanks!
It's all there. Dividends seem to make put-options look "expensive" and to make call options appear "cheap" if you're not aware of the impending dividend payout.