I am currently going long on the stock. Soon, I will be collecting my $5.12 dividend.
I am thinking of writing covered calls on my outstanding shares to collect another $5 for $32 strike price(Dec 2012 option). Would I be "paying" the dividend if I write the covered call? Or would I be collecting a total of $10.12 ($5.12+$5) if I choose to take this route by doubling on the gains on this trade?