sharecollector, I use a strategy of writing puts that expire 2 - 4 weeks prior to a stock going ex dividend. You bank the money from the written put, and if exercised get a fully franked dividend straight away.
For example: ANZ @ $12.40 currently goes ex div first week in May.
You can Write the $12.50 April Put for about $1.60 per share ($1600 per contract of 1000 shares)
Receive this money straight away. If it is below $12.50 on the expiry date, you then have to buy the stock at $12.50 and it will go ex div the following week, probably around 70cents per share franked. If you decide to keep the stock you can then go ahead and write a call against the stock and bank more money.
Once you have the stock you can then use it as collateral to write puts in other compnanies that are going to go ex in a few months. has worked for years for me.
Cash will get freed up when in the money calls are exercised and at some point you will lose yours.
This sort of strategy can get you about 40-60% per annum if you are right.
ANZ WBC NAB WES LEI are the next big ones worth dividend stripping.
