Pure Arbitrage...Still in Existence?

Discussion in 'Trading' started by bvam1, Jul 12, 2005.

  1. bvam1

    bvam1

    I've never seen a premium of 1.25.

    But I think you're misread my post. It's .75 per share. So, $75 for 100 share lot.
     
    #31     Jul 19, 2005
  2. Go and read the QQQQ prospectus. Yes, the NAV is updated every 15 seconds but you can only create/redeem at the end of each business day and in increments of 50,000 shares plus $1000 commission costs, not to mention the commission for buying/selling all the underlying securities and accounting for slippage, etc.

    ishares ETFs are much better in this respect as they allow units as small as 100 shares and can be redeemed continiously, and thus have a much lower premium/discount.
     
    #32     Jul 19, 2005