As Ive said earlier, the Shareprice of Myer tends to slip down towrds the dividend ex date, and then snap up after the ex-date.
The reason for this I suspect is market makers can sell the Put warrant and buy the call warrant for a net credit, and short the stock to create a delta neutral arbritage trade that is net credit.
This type of thing can result in shorts being hedged for a net gain.
The cause is Put warrants trading higher premium to call warrants, ( I believe thats correct)
The snap up after ex date, could be caused because the put warrants factor in the drop after ex-date, so is part of the reason put warrants are higher than call warrants.
In other words, you wouldnt expect a stock to rise on ex date looking forward so the Calls are dim while puts are high. Creates the perfect set up for this arbratige trade mentioned above.
But after the ex date, the calls and puts can equal out in their pricing, so it means the Arbitage shorters cant continue to short the stock until the puts start trading higher than the calls again.
So as downward pressure takes the foot off the pedal, the SP snaps up.
I believe this is correct, but I dont do these types of trades and I dont have access to short live volume or warrant trades, but it seems correct to me.
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Last
80.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $665.4M |
Open | High | Low | Value | Volume |
80.5¢ | 80.5¢ | 78.5¢ | $1.432M | 1.793M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 4773 | 79.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
80.0¢ | 50000 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 4773 | 0.795 |
2 | 10694 | 0.790 |
6 | 67393 | 0.785 |
3 | 30220 | 0.780 |
2 | 90000 | 0.775 |
Price($) | Vol. | No. |
---|---|---|
0.800 | 50000 | 1 |
0.805 | 8694 | 2 |
0.810 | 46300 | 5 |
0.815 | 12269 | 1 |
0.820 | 59983 | 11 |
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