Examples of Conversion and Reversion Strategies

In one of my previous blog, I had explained about Conversion Strategy.  At FinArbitrage, we do lot of analysis on a day-to-day basis to search for executable examples of Conversion Reversion Strategies.


As on 29 November 2016, below are the available instances of such strategies.


Points of Caution

  1. These strategies are arbitrage strategies, and as such gets snatched as soon as available.  There are many human as well as automated programs being run by specialized investment desk in search of these strategies.
  2. It is paramount that all the multiple legs of a particular strategy be executed in one go.  Only if all legs are available at an instance, the particular instance of these Conversion or Reversion needs to be entered into.  Thus no leg of the strategy can be entered into in isolation.
  3. Once a particular strategy is executed, it needs to be kept intact till expiry so as to realize the planned gain.  Thus available margin on an ongoing basis need to be monitored and any additional margin as required will have to be made available.

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