TLS was ex-div today. The div was 15c, and the sp closed 21c lower today than yesterday.
Hence, if you had shorted 10k shares at the close yesterday, you would be $600 in front at the close today.
This strategy appears to be reasonably reliable for the banks, perhaps TLS, and who knows how many other ASX100 stocks.
Maybe somebody with a lot of spare time could prepare a spreadsheet that measures the success of this strategy for the ASX50 for each ex-div day for the last 5 years.
Now somebody with a lot of spare time could prepare a spreadsheet that measures the strategy of opening a long trade 4 weeks before the ex-div date, followed by closing the long trade and shorting one week before the ex-div date, then finally closing the short at the end of the ex-div day.
Do you know anybody that has a lot of spare time? Oh, that right, most of the HotCopper punters have a lot of spare time .... just not me.
