Yesomite Sam's grandma has left behind 10,000 shares of IBM as inheritance for him. However, knowing of his problems with firearms, he is not permitted to sell the stock. If a sale happens, all the money goes to Looney Tunes University. IBM pays $1.30 per quarter in dividend. Using the information given in Table 1, create an option related covered call writing strategy for Sam without subjecting him to the risk of exercise. Show me the exact amount of money in addition to dividends that Sam can expect to earn. Explain and justify the strategy.

TABLE 1 IBM CALLS, S = $130 STRIKE EXP Vol. -CALL- Last 1.22 Nov. 146 130 Nov. 77 0.99 135 Nov. 254 0.36 140 Nov. 46 0.46 145 Dec. 130 1112 5.00 Dec. 135 167 3.10 Dec. 140 167 1.85 Dec. 145 264 0.98 8.40 Jan 21 19 130 Jan 21 6 6.33 135 Jan 21 32 4.70 140 Jan 21 11 3.50 145 TABLE 1 IBM CALLS, S = $130 STRIKE EXP Vol. -CALL- Last 1.22 Nov. 146 130 Nov. 77 0.99 135 Nov. 254 0.36 140 Nov. 46 0.46 145 Dec. 130 1112 5.00 Dec. 135 167 3.10 Dec. 140 167 1.85 Dec. 145 264 0.98 8.40 Jan 21 19 130 Jan 21 6 6.33 135 Jan 21 32 4.70 140 Jan 21 11 3.50 145