invest in stk

Discussion in 'Trading' started by clarodina, Dec 29, 2012.

  1. invest in stk for months but when theres dividend of a dollar or more the stk price decreases

    for month investment the decrease do not really pose problem but veterans any method to hedge the decrease?
  2. drm7


    The "hedge" is the $1.00 dividend. You get that money directly.
  3. yeh but waht instrument use for the hedge and how to do?
  4. drm7


    There's no need to hedge, the stocks drops by the same amount as the dividend, so you don't lose any money.


    You buy stock XYZ for $20. It declares a $1 dividend.

    The stock opens the next day at $19, but you get $1 deposited into your account.
  5. yes know but is there some ways to hedge the price fall? some advocate selling options but is risky
  6. CT10Gov


    But you didn't lose any money!! Just back an extra dollar worth of the stock and you are in the exact same position as pre dividend.