Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities.
Dividend Amount: $0.20
Ex-Dividend Date: June 06, 2012
Strategy: Buy Corrections Corp Of America stock and offer to sell the June $25.00 strike or lower call for 32 cents over the intrinsic value.If my shares are called away the day 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. After qualifying for the dividend, I will attempt to close out the trade with a gain of near 14 cents, plus the dividend earned.