Dividend Capture Options

Options Advanced Stock Options Index Options (limited applicability)

Exploiting predictable price adjustments and option pricing around dividend events

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Quick Reference

Strategy Type Event-Driven / Arbitrage-Adjacent
Market Outlook Exploiting predictable price adjustments and option pricing around dividend events
Risk Profile Varies by structure - can be defined or moderately undefined
Reward Profile Typically small but consistent profits from dividend-related mispricings
Time Horizon 1-14 days surrounding ex-dividend date
Capital Requirement Moderate to High depending on strategy
Margin Type Varies by structure - synthetic positions require significant margin
Best Used When High-dividend stocks with liquid options, predictable dividend amounts, option markets not fully pricing dividend impact

When to Use This Strategy

High-dividend stocks with liquid options, predictable dividend amounts, option markets not fully pricing dividend impact

India-Specific Notes

Lot Sizes

ITC 1600 units per lot
Coal India 4200 units per lot
ONGC 3850 units per lot
Power Grid 4500 units per lot
NTPC 5000 units per lot

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