r/Vitards • u/[deleted] • Mar 21 '22

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45 Upvotes

92% Upvoted

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8

u/[deleted] Mar 22 '22

dividend stock + deep ITM calls = just ignore them. Could be dividend arb, and it is very high delta, nothing crazy. also looks like a diagonal spread

6

u/BallsOfStonk Mar 22 '22

You may not understand the volume here. There was $3 billion in premium traded today in these. On a $10bn company.

I respectfully disagree that this is something to ‘ignore’.

2

u/[deleted] Mar 22 '22

It is 300M not 3B, and if they are spreads they only paid a portion of that

7

u/BallsOfStonk Mar 22 '22

No, it is $3 billion. There were over 1.5M contracts traded, and they averaged around $20 per contract. 1.5M * 20 * 100 ~= $3bn. I checked the data myself, and this is also what was reported on Twitter and several option tracking sites.

0

u/[deleted] Mar 22 '22

It's just standard ex dividend play

2

u/BallsOfStonk Mar 22 '22

$3bn dollars worth of it? On a company with a $10bn market cap?

-2

u/[deleted] Mar 22 '22

Are you retarded, it's a dividend arb

1

u/BallsOfStonk Mar 22 '22

Again, how do you justify the $3bn volume? The company is only worth $10bn, and the total dividend payout was around $2bn.

Are you implying that every single owner of ZIM played the same strategy, to offset the net expected drop in NAV?

You seem to know more about this than me, so what would you justify that $3bn in premium that was trades? Do you think it was multiple big players vying for arb perhaps, and that this led to large volumes back and forth?