Cheers for that, Yes, I understand that it is very risky but I...

Cheers for that,

Yes, I understand that it is very risky but I go in with the mindset that I am happy to own the stock and would generally take a conservative position at or below the current share price.

The fact that I didn't realise that options ending in .01 were European does indicate that I am a novice and need to be extra careful though!!

You are right about the dividend and needs to be factored into the inital price, I try not to hold open positions when go ex divi but have be caught before.

thanks for the depth report.