MMM -- Dividend Capture

Last Friday, I saw an opportunity for a dividend capture covered call play on MMM. MMM bounced slightly under the $87.50 strike price and was going ex-dividend on Feb 15. What I expected to happen was to pocket the call premium and a little capital gain on a bounce back up, with the call getting exercised just prior to the ex-dividend date. On the eve of the ex-dividend date, the price was up to $87.99, so everything was going as planned. However, surprise! The call didn't get exercised, so I got to pocket the dividend, plus the stock continued to go up and should get assigned over the weekend.

As a result, I ended up with $2,465 for the week -- $1,180 from the dividends, $790 from the call premium, and $495 from the capital gains. So the dividend almost doubled my return, although the position did last a few days longer as well:

Stock Price	Date	Description	Total	xIRR
$87.24	2012-02-10	Buy 2000 shares MMM @ $87.24	-$174,480.00	19.5%
$87.12	2012-02-10	Sell 20 MMM 2/18 2012 $87.50 Call @ $0.41	$790.05	19.9%
$0.59	2012-02-15	Dividend of $0.59 per share	$1,180.00	--
$87.59	2012-02-17	2000 shares MMM assigned @ $87.50	$174,975.00	21.1%