My call option was .98 not .80. Still dont get your point. Are you saying to buy Treasuries and not do my trade or a combo?
my point is that you are really taking a directional bet: if stock is less than 63, you will get the div but pay in other way such that you make like 50 cents. If the stock is greater than 63 you won’t get the div but will still pay like 50 cents. you economics will 18 cents better than what I posted if you sold the call for 98 cents
It’s not riskless, your short call will be assigned early if stock is ITM on ex-dividend date. So if stock goes up, you lose the stock while put is marking lower - not very riskless
I tried these arb trades. Often my stock was called away from early exercise. So this trade does not worth it
This is literally the most basic arb in the world. Options traders learn about it in their first day in analysist trading. It’s typically in chapter 1 of any options book.
Not true if you stay with my trading. Sell a slightly out of the money call with a decent call price. It will not be called away as it is a short term expiration. I gave you an example. Mine are not called away. If they are you still get the covered call profit and sell the put which has value. Look at my example again is my recommendation
Look up my post trade example. Show my one item that is wrong with the figures. you have to pick correct dividend stocks. I can give you another example if you with, so you can understand