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:
- 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 ...
- 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 ...
- 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.
- 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.
- Dividend Arbitrage by OptionTradingpedia.com
Learn how Dividend Arbitrage can help you make risk-free arbitrage profits in options trading.
- 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 ...
- 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 ...
- 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, ...