Reverse Arbitrage target achieved with Hero motors

After seeing the Reverse Arbitrage opportunity in Hero motors last Thursday I have wrote a detail blog about it on 29-Aug-13. I had mentioned how to execute this arbitrage opportunity seen in the stock and an checklist before executing this trade.

Based on my analysis now 4-Sept-13 I see the Spot:1926.65 & Future:1918.25 price difference of Hero motors is covered 80 points which is almost 90% in just 4 trading days. The difference in price of Spot & Futures is 86 points last week. 

One could have made an risk-free profit of Rs:10000/lot in this trade excluding borrowing and brokerage cost.

The trade idea/strategy mentioned last week. 

Scrip Name	Buy 1 lot Sept Fut @	Sell 125 shares from demat @	Difference  (in BPS)	Gross Profit  (in Rs)	Holding Period
HEROMOTO	1886.75	1972.8	436	10752.05	Till Expiry

I am happy that my idea worked out well in reverse arbitrage strategy, this is the first time I have tried out arbitrage trade and it took off well as expected.

I request those who are reading this blog to share your comments and trade ideas, I believe we could learn more when we share our ideas.

Happy Trading