Coal India has declared dividends during the month of Feb/Mar in the past two years, and it could be due around the same time this year. The difference in the Futures and Spot price could have accounted for this. We will come to know on 10th Feb when they announce their earnings for the quarter.
The Feb Future can be shorted and the Mar Future can be bought simultaneously. If the gap between the two futures reduces, there will be profit. Margin requirement will also be lower, so ROI could be handsome.
Actually, I did not. It was @Tarzan who posted this find in this thread. When I saw this thread, I simply went and checked the live prices and the opportunity was wide open, actually, it’s still there…
By the by, just curious, your handle name resembles a TA on business news channels. Is it just a coincidence?
the thing is this is due to the dividend that is to be declared right? so how come do u think that ur going to profit or benefit from it? because as soon as the dividend is declared the price of both the futures will be nearly equal to the market price! a little difference as of Feb and mar expiry ) ! just wanted information because even i have found such scenarios but i haven’t traded any!
For some unknown reason Zerodha Margin calculator is acting dysfunctional when I add the March future with the Feb future, so I went to another broker’s margin calculator page and obtained the total margin required, their margin requirements is fairly similar to Zerodha’s… Total margin around 19.5k