Buy put options to the capture $8.00 dividend "drop" in share price
Is the $8.00 share price drop that will happen right after the $8.00 dividend already priced into the December put options?
It appears that its not priced in. So couldn't someone just buy the puts (just out ot the money) and wait for the share price drop in December and make money on the options right away? Advice appreciated.
If you pay $8 for a $100 option today (market price of the stock is about $108), on Friday morning you will wake up to a strike price of $92 and, barring change in the market, a stock price of $100, giving you the same $8 value when you exercise or sell the option before Friday night (or costing you that $8 if you let it expire).
Note that repricing isn't always done for options when dividends occur. Small dividends paid on a schedule get priced into the option premium by the market, so the clearing house doesn't interfere. But this was a one-time option of significant size, so they will reprice them.