Dividend Amount: 77 cents
Ex-Dividend Date: June 13, 2012
Beta: 1.00 Strategy: Sell the June $42.50 strike or lower call for 60 cents over the intrinsic value and buy TOT. This is a dividend capture without the dividend. Because the dividend amount is much higher than the option premium, we expect to get exercised the day before TOT trades ex-dividend. The goal is to capture the 60 cents option premium, get exercised and move on with only three weeks risk exposure. I prefer to get exercised with ADRs because of potential tax issues.