why are FDG 2008 call options below market price?

[SuitedPair]

The main reason is the high dividend yield the stock pays. Typically, when the dividend is paid the stock drops by the amount of the dividend, otherwise there would be a great arbitrage opportunity. Since this is a high dividend paying stock and investors think that the company will continue to pay dividends in the future the stock price will be reduced by the dividend amount more in the out years.

Another aspect is the seller of the call will likely be collecting the dividend. When he sells the call to you he would likely buy the stock to hedge his book. Since he is long the stock he will collect the dividend. This would also make the call option less attractive compared to owning the stock outright, thus lowering the price an investor should be willing to pay for the call option.

These are active options, just eyeballing open interest it looks over 100,000. There are several investors that arbitrage these high dividend stocks betting on future dividend payments.

I'd bet that investors are betting that the div. drops causing the share price to drop. ( I know that seems counter to the first paragraph, but I think you know what I'm getting at).

I’m not sure how clear any of this is, I’m rushing before the open.