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I think you would lose if it dropped below the call break even point. If you sold another call it would be below your stock buy point and a loss would occur no matter how much it rose again. If it kept dropping you would be further in the hole if you kept selling calls.

I guess the main question is would the call be assigned just before the ex dividend date of May 16, when there is a premium of over 2 dollars on the covered call portion? How much of a premium on a covered call is needed for it not be called before the expiration date?

Since the expiration date is after the ex dividend, I would get the dividend on May 16th as the expiration date is on the 18th. Plus I would get the .16 profit from the conversion trade. Correct?

Not sure what you mean by priced wrong. Those were actual prices at the time I listed. Do you mean something else?

It is set beyond the ex dividend date of May 16. As far as early assignment would that happen with the assignment price more than 2 dollars over the purchase price? If that is the case then I would collect that profit? Of course, i would hope to close the put before that to capture some of...

What about this trade for prices as of today about 7:18AM PST. Buy MSFT at 93.11, 100 shares Sell May call 90 strike at 5.80 Buy May put 90 strike at 2.47. Capture dividend of .42 per share plus .16 cents for collar. Yield of 3.8 annualized. For those who want a safe higher than market...

Tomaz, do u have a site for that QQQ collar study?