That was an example of what you COULD have done, like I said, not what you SHOULD have done. Indeed of what you can do with blue chips, that you cannot do with penny stocks, since you cannot trade options on penny stocks, and of course, they do not pay you a dividend (sometimes small consolation for bag holders of large cap stocks, but still...)
Of course, options or no options, dividends or no dividends, you still are subject to the ups and downs of the market while you are in the trade.
Now the question for me is do I keep my own counsel? ... at a lower strike price now today. INTC would need to go down a bit more for that. Most recently the May 24 45 put sold at 1.12, HOD so far, but still quite a bit off yesterday's example of 1.31 that would allow one (after commission) to collect a year's worth of dividends off the top of the trade in a couple of weeks.
Meanwhile, I am looking at a couple others in my rotation whose next dividends approach much sooner. Imminent dividend capture used to be my focus of this particular strategy, but doing that does limit the time value part of your option premium. Hence the reason I am looking at INTC so soon after going ex-dividend, even though it has only hit my downside target(s) post-dividend.
And looking at the market now, if the bounce 45 minutes ago was the bottom of the day, I will not be selling any puts today; I priced my premiums too high, but that's OK; there is always next week and the next play.
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