Hello Z Traders,
Any logical reason why there is a huge difference in the Jet’s spot and future price…
How can we profit from this position.
I am planning to hedge, like shorting in future and buying in spot? Is it a good idea ??
Regards
Vikram
Futures trades at discount mainly because a company is expected to give dividend. Once company pays the dividend, mostly share prices falls. Discount value can also be based on the other factor. If a selling is expected, there are high chances that the future contract most likely be trading at discount.
Same theory applies for index also. When multiple companies of particular index are expected to pay a dividend, then particular index future will be trading at discount.
1 Like
Thanks Shravan, however we are talking about JET here… They hardly have money to pay for their employees and they are in losses Q after Q … they are beleeding … any possible reason apart from dividend story …
I have already mentioned the other possible reason too.
Thanks Shravan … appreciate your response.
you cant advantage of this situation here … futures are in discount , so to arbitrage we have to go long in futures and short shares which we cant carry overnight …
1 Like
its on F&O ban so no fresh buy possible. maybe be thats why
1 Like