Sr. Correspondent, Broker Research, Bangalore, India
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Nov 7, 2014
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Nov 6, 2014

Last dance for options trading strategy around dividends

NEW YORK (Reuters) – Options dealers looking to snag the coming dividend payment on Apple Inc’s (AAPL.O: Quote, Profile, Research, Stock Buzz) shares sent the iPhone maker’s call volume to a record on Wednesday, but new options market rules mean this may be their last chance for such a strategy.

Large market makers have long used a dividend-linked options trading strategy to make easy money by taking advantage of a hole in the Options Clearing Corporation’s rules on clearing trades. New rules set to take effect later this month will close that loophole.

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    • About Saqib

      "Saqib Ahmed is an options correspondent working with the Markets team in New York. He previously led the Reuters Broker Research team in Bangalore. He joined Reuters in 2009 after graduating from the Asian College of Journalism."
      Joined Reuters:
      2009
      Languages:
      English, Hindi, Bengali
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