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I don't want the option hedge unless the sale will provide at least the minimum 32 cents over intrinsic value. (Read my article Sprint, AT&T Rip Higher In Front of Earnings.)

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 32 cents. The most I can make is 52 cents if I hold the covered call through option expiration day and the stock gets called away.

MSFT Payout Ratio TTM data by YCharts
WAG data by YCharts

Walgreen(WAG)

Walgreen is a national retail pharmacy chain and considered the leader in innovative drugstore retailing. The company was founded in 1901 and is based in Deerfield, Ill.

Yield: 3.18%
Dividend Amount: 28 cents
Ex-Dividend Date: Aug. 15
Beta: 0.99

Strategy: Buy Walgreen stock and offer to sell the August $33.00 strike or lower call for 40 cents over the intrinsic value. I will attempt to close out the trade with a gain of near 25 cents, plus dividend.

I don't want the option hedge unless the sale will provide at least the minimum 40 cents over intrinsic value.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 40 cents. The most I can make is 68 cents if I hold the covered call through option expiration day and the stock gets called away.