I was hoping someone can explain to me how you can get to take part in the EC (Exercise calls) similar to those that took place shortly after 7am according to Commsec Professional Trader for Westpac this morning.
The bank goes ex-dividend today so anyone on their books as of last night is entitled to the dividend. Usually there is a quick slump in the price the next day, sometimes equal to the dividend and franking price (in this case almost $1)
As some of these trades were going for $27.50, this is not much below last night's closing price.
How are they able to do that and how can I get a piece of the action.
In one transaction (according to the site) 507,000 shares trades @$27 for a grand total of $13,689,000.00
I can understand (sort of) what happens in the auction that takes place just before the market opens, but these were 3 hours before?
What really makes me confused is if it is a like a "Put" option, seeing WBC was selling at slightly less than $27.50 just before 4pm yesterday, why weren't the $27.50 ones triggered then?