Tax advantage of using SSF synthetic interest

Discussion in 'Trading' started by dj8899, Apr 6, 2007.

  1. dj8899

    dj8899

    Is there any tax advantage to be gained by using the implied volatility from buying a stock and selling the SSF where the stock involved has a large dividend? Instead of the regular tax rate, could you use the dividend tax rate instead?

    Example
    Stock XYZ has a synthetic interest of 5%
    Stock XYZ also has a dividend yield of 3.5%

    compared to a money market, would this be better?