$Microsoft(MSFT)$ Bit more on that dividend flow, which you see when a ticker's ex-div date is the following session
1) MSFT calls with the highest volume. Ignore the 415 weekly
2) the 'dividend flow' is an arbitrage trade which involves immediately exercising the calls
3+4) note the 375 and 250 weekly calls. $140M and $129M in premiums respectively . Look at how open interest was completely cleared out because of this strategy
MSFT did perform well but due to factors unrelated to this activity
Image
Image
Image
Image
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments