Can I trade MPJ and MPJO in this way?

[ta2693]

Right now MPJO is 0.05 ex price 0.01
MPJ is 0.08c

can I short sell MPJ at 0.08 and the same time buy MPJO at 0.05 and pay 0.01 to exercise it.

then I can earn 0.02 per share. not too bad for a day trader.

I know Comsec have short sell facility, can I use Comsec to short sell MPJ.
or Can I use CFD to do the same job?

Thank you

 

[ta2693]

sorry I made a mistake. the ex price is 1 cent rather than 0.1 cent.
please delete this post. administrator.
Thank you

 

[stoxclimber]

Two problems
i) Comsec won't let you short MPJ
ii) Exercising MPJO takes a while (talking over a week) and you're exposed to the share price risk for that amount of time.


You basically can't riskless arb exchange listed options.