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Porgie Tirebiter

05/13/13 2:23 PM

#1502 RE: tfgg1 #1501

All you have to do is wait for ex-dividend. For the last six months or so, it has usually provided a great buy in point with the stock giving up more than the divvy payout.

I'm bidding $1.05 on June $5 calls. I can create the stock at $6.05 and with a .95 delta, should make money right on par with the stock. Although I'll share nearly the same upside/downside risk as the stock owner, I'll control each 100 share block for $105.00 instead of $605.00

A big disadvantage is a wider bid-ask spread than the stock, it's currently 10¢ and that's about as narrow as I've seen it with ARR options.