Exploiting predictable price adjustments and option pricing around dividend events
| 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 |
| 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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