Hi all,
I am looking at a dividend capture strategy around web but didnt see it being discussed anywhere for indian markets.
So the strategy is
-buy the stock before ex-dividend date. equal to the size of FnO lot..
- sell one strike above OTM call
-After the ex-dividend date - sell the stock and buy back call - if in profit - or apply covered call strategy
-Get the dividend too.
Anyone with the view of what can go wrong or why it will not be beneficial ?
thanks
I am looking at a dividend capture strategy around web but didnt see it being discussed anywhere for indian markets.
So the strategy is
-buy the stock before ex-dividend date. equal to the size of FnO lot..
- sell one strike above OTM call
-After the ex-dividend date - sell the stock and buy back call - if in profit - or apply covered call strategy
-Get the dividend too.
Anyone with the view of what can go wrong or why it will not be beneficial ?
thanks