In my humble opinion, I like the March 19 2011 calls with a strike of $27. They are currently selling around $1.00. They were $1.90 last night when the stock was $27.99, so I loaded up on them. The ask is currently $1.15. 178 contracts have changed hands today. The dec. volume is higher, but I just like a little more time in case something goes wrong. Anyway, If you buy the Dec. calls, then they expire on the 18th of Dec., so you can't ride the stock through to the ex-dividend.
The quick and dirty analysis is that $27 plus a premium of $1.00, gets you to $28.00. That would seem pretty easy by Dec. Again, last night, they were priced at bid of $1.90.
So, even if you get $1.90 - $1.15, not bad change. 65% return. If it hits $29 again, well, then that would be something to cheer about it.
I suppose in hind sight I might have stepped back into ITM today, but these are effectively in the money anyway.
why cant u cash in on the next div my stock got called away from me this quarter glad it did now i got in at 26 i bought calls the dec 27.50 calls today the stock usually goes ex div a week after the options expire unless im missing something enlighten me