A strategy with which to get into shorts. Usually before the cut-off, on stocks that can be shorted, JUNE JULY Harvest - page 2
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I see. So we don't have the shares, we just sell the futures before the cut-off, then we buy them back.
Yes, if you're sure the stock will fall.) And you don't owe anybody anything)) And you need less money for the futures than for the shares, and the profit/loss is the same.
And where will it go? - You do not know where it will go.
You can do the same thing, but even better with options, or even a combination option-futures.
I see. So, we have no shares, we sell just the futures before the cut-off, then we buy them back.
At the time of dividend announcement = the futures "go into" backwardation, i.e. the value is lower than the stock.
At the time of cut-off = the stock falls by the dividend amount and the futures stands still.
No profit = commission expense.
This mechanism works perfectly
A couple of days - maybe three to four days before the cut-off date - we go short on the instrument and get a wonderful gain
exampleMRKV , cut-off date 10.06.2019
Yuri, you have not described the strategy correctly. My strategy works like this: on a liquid paper with good divisions in two months I start to buy a paper gradually on the shoulders to the main package and a day or two before the cut-off I start to discount these shoulders, but in no case shorting. We have a profit after the cut-off, which we gradually redeem this drawdown, etc. ....
Yuri, you have not correctly described the strategy. My strategy works like this: on liquid paper with good divisions in two months I start to buy gradually on the shoulders of the main stock and a day or two before the cut-off I start to discount these shoulders, but in no case shorting. We have a profit after the cut-off, which we gradually redeem this drawdown, etc. ....
it's a different strategy - also quite interesting
Judging by the dynamics of June 10/11 on SRU9 (fall futures on Sber), even despite the initial backwardation to the value of the stock, still the futures price went down. In other words, the gap size exceeded the negative spread.
The historical tables are available, but this information is usually on sites which have links to the broker, and the moderators are glad to ban such links.
This mechanism works perfectly
A couple of days - maybe three to four days before the cut-off date - we go short on the instrument and get a wonderful gain
exampleMRKV , cut-off date 10.06.2019
Yep, and pay dividends :)) Not to you, but to you.
I give you the gift of the boozy "Div hunter" strategy
The gist of the strategy is this:
As you know the futures relative to the spot, on average, trades with a gap equal to the % rate of the central bank
We buy shares, sell futures and have an income of about 7% per annum (no bank will give so much for 3 months).
Not much, of course, but there are companies which pay dividends unexpectedly (for example, Magnit SA).
Very often (see history) they pay repeatedly, i.e. on a 9 futures can "fall" dividends (last were this month = 166,78 rubles per 1 share)
Then at expiry we get ~7%p.a. + dividends
Risks, in this case = 0 !
Added
I, for example, started buying MGNT today
You could also buy Sber (regular) or Mosbirch, the interest is higher there than the 6.989% I buy, but the probability of
of dividends from Magnit is an order of magnitude higher.
Yeah, and pay dividends :)) Not you, but you.
I give you the "Div hunter" strategy.
The essence of the strategy is as follows:
As you know the futures are relative to the spot, in average, traded with a gap equal to the % rate of the central bank.
We buy shares, sell futures and have an income of about 7% per annum (no bank will give so much for 3 months).
Not much, of course, but there are companies which pay dividends unexpectedly (for example, Magnit SA).
Very often (see history) they pay repeatedly, i.e. on a 9 futures can "fall" dividends (last were this month = 166,78 rubles per 1 share)
Then at expiry we get ~7%p.a. + dividends
Risks, in this case = 0 !
Added
I, for example, started buying MGNT today.
I was describing a case where a particular security is not in the portfolio. A couple of days before the cutoff we go into a short. What do you mean pay dividends?