jeudi 14 août 2014

Does the XJO decline due to upcoming ex-div dates?

Hi All



As we know ex-dividend season is upon us with CBA, TLS and WES going ex-div next week. Collectively these 3 make up just over 16% of the entire ASX 200/XJO index. On ex-div day typically each share drops by its dividend amount meaning each of these shares will drop by aprox 2.6% of their just-prior-to-ex-div value. Multiplying this by their respective % representation in the XJO equates to approx 0.44%. Theoretically does this mean the XJO will drop by a like % next week and if so, more importantly (I'm an XJO option trader), will this drop affect XJO call/put option prices??

Cheers, Paul




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