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Options ahead of Dividend
- Thread starter xyannix
- Start date
Quote from thegazelle:
Div arb.
"Footprints of this activity are readily evident in large spikes in call volume observed immediately prior to ex dividend days on stocks that pay large dividends."
See attached paper, its really long but its an easy skim.
Thank You so much, just what the doctor ordered!!!
Div arb call spreads have been going on since long before that paper was written. There is no new ground broken in that paper. I wonder why so much effort was made to create that paper so many years after that game has been around.
The bottom line is that div arb call spreads are not applicable to the general retail public.
The pool of unexercised options that should have been has grown smaller and smaller each year.
The bottom line is that div arb call spreads are not applicable to the general retail public.
The pool of unexercised options that should have been has grown smaller and smaller each year.
Quote from xflat2186:
Div arb call spreads have been going on since long before that paper was written. There is no new ground broken in that paper. I wonder why so much effort was made to create that paper so many years after that game has been around.
The bottom line is that div arb call spreads are not applicable to the general retail public.
The pool of unexercised options that should have been has grown smaller and smaller each year.
Perhaps, but I thought it was valuable and it explained the concepts that I didn't understand.