Thread by @theBuoyantMan

This is why I use Indian fintwit only for entertainment.

Some nuthead retweeted a tweet from the thread out of context, and entire Indian fintwit goes crazy.

If only people read the entire thread without pulling one or two tweets out of context, but no.

https://twitter.com/MysticWealth11/status/1320000247104294913

Before reading anything, read what's in this screenshot. Further details here -> www1.nseindia.com/products/conte…

So, when a dividend is announced, the stock price is adjusted to reflect that, and futures price is also adjusted, and options are revised too.

But the price drop I talked about in my thread, was the drop from investors selling the stock after they have qualified for dividend.

To understand exactly what I meant in my thread,

- Go pull the announcement and ex-dividend dates of top dividend paying stocks
- Get the dividend adjusted stock price of these companies and futures price too if you can for that particular date range

For approximate futures price, go to that google drive link I had shared long back. It's not completely accurate, but it's approximate, and is most likely adjusted for dividends and corporate actions.

With the price of spot and futures, find the pattern I am talking about.

And, if you haven't read the entire thread, read the entire thread. It's easy to cherry-pick tweets out of context and misrepresent and misquote what one has written.

While I don't proclaim to be an options expert, it's funny going through yesterday's comments.

Again reiterating, with the thread I have posted, go get the announcement/record dates for top dividend paying stocks, and find the price patterns. You'll then understand the price pattern, and what I talked about in the thread.