Accounting for Dividends in Equity Options and Portfolio Hedging

Consider a scenario where your client, an HNI holding a concentrated equity position, inquires why the option premium on their stock dropped significantly just before the ex-dividend date. As a distributor, you must...

Navigating Liquidity and Execution Risks in Derivative Strategies

A regular HNI client approaches you, having read about arbitrage strategies in a financial blog, and asks why their attempt to replicate a put-call parity trade via their retail trading account resulted in a loss rather...

Navigating the Hidden Dangers of Synthetic Replication

A sophisticated HNI client walks into your office in Mumbai, eager to deploy ₹50 lakhs into a strategy they read about online. They have heard that combining options and cash can synthetically replicate a long equity...