It's got legs yet ... up to $32 or even $33 (as some analysts have forecast). Monday is XD, so we'll see an instant drop of the dividend amount, $1.25, at the opening. After that, it could pick up the momentum of the last several weeks ... right up until SPO announcement (if any).
This is interesting but it's not terribly surprising. 32 would have been mildly surprising. I think I'd really get the goggle eyes if it had hit 35 before this div.
Whatevs. I'm super-dooper bearish on it from now to March expiry or the SPO, whichever comes first. Just un-hedged my spreads and went triple-long the Puts. Tempted to write some fat, dripping, gooey, sugary, deep-ITM calls. All the short delta with none of the short div. Monday look at outright shorting the stock.
Are you suggesting that selling, for example, a Mar25 or Apr25 or Jun25 Call today will net you essentially the amount of the dividend (offset by any PPS appreciation on EX) by Monday because the option premium drops due to dividend?
And that the risk of having that call assigned today and you having to pay out that dividend youself is low?
If so, this is an interesting strategy. Seems too good to be true.
Would the choice of expiry month be a factor in reducing the likelihood of assignment (i.e., farther out = less likely)? I see that the premiums for all months at 25 strike are essentially the same right now.