Australia's largest stock trading and investment forum Australia's #1 stock forum

XJO

Click for more information

0.10%

7,767.5 s&p/asx 200

Thanks for that rvm. One arbitrage strategy that might work...

First 12 Last

Share
Profile

Follow
kacy

11,656 Posts.

545

11/11/16

10:53

Post #: 20542007
Share

Originally posted by rvm ↑

If you short 1 standard XJO contract, you're guaranteed to lose $25 x 20.9 =~ $525 for dividend adjustment. If you're long XJO you'll get paid that amount. You'll also have to pay the long/short interest.

Let's say the index is 5250 at 16:00:00, after dividend adjustment the index will drop to 5229.1 at 16:00:00. Usually games get played during the 10 minute auction.

If you're not familiar how this works, stay away and watch a few games before you decide to play it right.

NAB and ANZ go ex-div Monday. They are around 10.3% of the index

Expand

Thanks for that rvm. One arbitrage strategy that might work would be to go long on ANZ & NAB and go short on the xjo to hedge against the fall in price of ANZ & NAB on Monday. This still exposes you to a rise in the other major stocks via the xjo short. To hedge against this, a short on the other majors could also be taken.
1 Upvote

0 Great analysis

Reply

Top Stories

RCE

Recce's R327 found effective against E.coli during clinical trial

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Microcap Wrap: 5 explorers with news out today

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

There are more pages in this discussion • 20 more messages in this thread...

First 12 Last

Add XJO (ASX) to my watchlist

SPONSORED BY