Hi I would like to experiment selling Spy deep itm call options. So I want to understand what it's going to happen when ex dividend date is approaching. The next ex-dividend date is 06-16 and it is also the option expiration date. The itm strikes has low liquidity so I don't Know if i will be able to close my position, buying calls, at a good price. If the call holder exersice I will have to pay him the dividend, that's right? 1_If I am assigned a few days before I'll be able to re buy the shares before the ex-dividend date, so I will not have to pay dividends to the shareholder. 2_If the calls holder decide to exercice their calls in the last day, probably I will not be notified untill 5 a.m ET, so i will not have time to close new my short shares position until monday,so I will have to pay dividends. That is correct? If I borrow is there any period of settlement? 3_And If the dividend is higher than the extrinsec value that I received for selling the calls, it's going to be a loss position. 4_But, since I'll be short in 100 Spy and next Monday the Spy will open lower, by the amount of the dividend, maybe the net position will be positive. What do you think? Also I 'd like to know When is the declaration day for SPY, I haven't found it. Thank you for the ideas.
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Hi wou, I don't know if you are being ironical, hopefully not. Do you mean 200 every day or every ex-dividend day? I have to know some answers before I realize if I have discovered something. What I am thinkink of doesn't look bad. But it seems to me that not going to discover anything really new.