SSF & Dividend strategy

Discussion in 'Financial Futures' started by mccmatthew, Dec 5, 2002.

  1. Could this be a possible way of obtaining a dividend on a stock and being short the SSF , so that you are neutral in position and still receiving a dividend:

    For instance:

    You would be long 1000 shares a week or so before ex dividend.

    You would then short 10 SSF contracts.

    = neutral (minus commissions)

    When dividend is payed you close positions

    Could anyone post any inherent problems with this strategy?

  2. Htrader

    Htrader Guest

    SSF prices already factor in dividends. This is why they often trade at a discount to the underlying stock.
  3. It's a sad fact that there's no free lunch

    If it could be done, it would already be done by all the arb traders and you couldn't do it anyway.
  4. Maybe.

    An arb trader ...
  5. Well now that you gave everybody the idea on Elitetrader the spread will narrow even more as competition increases.

  6. Takes a lot of capital and resources; not for the average trader ...
  7. cheeks



    Are you a retail trader?
  8. Haha. :eek:
  9. cheeks


    What's so funny?
  10. Not really; except for the textbook definition ...
    #10     Dec 5, 2002