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dividend arbitrage

A low risk hedge technique used by options traders to generate additional income from a short term transaction involving a high yielding dividend stock. Owning both the shares and the proportionate number of options on a dividend paying stock, the trader receives both the dividend payment and the income from the sale of the options.

Related information about dividend arbitrage:
  1. Dividend Arbitrage Definition | Investopedia
    An options trading strategy that involves purchasing put options and an equivalent amount of underlying stock before the ex-dividend date and then exercising ...
  2. Implementing Dividend Arbitrage: Verizon Wireless - Seeking Alpha
    Jan 3, 2012 ... My favorite trade for low interest environments like those found today is dividend arbitrage. Dividend arbitrage is the process of buying ...
  3. Alternative Investing Strategies: Dividend Arbitrage Doesn't Work ...
    Aug 10, 2011 ... In this article I examine the strategy of dividend arbitrage. The ex-dividend date is announced quarterly upon the declaration of the dividend.
  4. Dividend Arbitrage Explained | Online Option Trading Guide
    What is Dividend Arbitrage? See detailed explanations and examples on how and when to use the Dividend Arbitrage options trading strategy.
  5. Dividend Arbitrage by
    Learn how Dividend Arbitrage can help you make risk-free arbitrage profits in options trading.
  6. Arbitrage traders cash in on dividend play - Economic Times
    May 8, 2012 ... In a simple dividend arbitrage trading strategy, traders buy shares that announce dividends, prior to the ex-dividend date - the day before which ...
  7. Dividend arbitrage crackdown - King & Spalding
    Dividend arbitrage crackdown. Some market participants think FATCA is throwing out the baby with the dividend bath water. ANNA REITMAN REPORTS ...
  8. What Is a Dividend Arbitrage?
    Dividend arbitrage is a low-risk method of trading stocks that includes purchasing the put, or sell, option of a particular stock as well as the underlying stock itself, ...