Buy @ $2.15
Itchy fingers. Buy OCBC Rights on the 1st day of it's listing. Last day will be on 9-Sep-14 (Tue). Exercise Price = $7.65
There's a gap of 3-5ct with the Mother Share (OCBC) and for a while, both volumes track each other very closely.Perhaps, the Arbitrage Gap is wide enough for the bigger players to do an Arbitrage ie. Sell OCBC shares and Buy OCBC Rights, equal numbers. This would make sense to those who are already holding OCBC shares for long term purpose. The transaction costs must also be lower than the Arbitrage Gap.
In my case, $2.15 OCBC R => $$9.80 OCBC or $10.25 "call' (Div = 18ct ; 1-for-8 Rights @ $7.65). Definitely not as good as the $10.15 I didn't act on. Further, a different strategy is being tried out. 😀