Long Futures, Call Spreads In SX5E Divs Find Focus

During November, investors have been increasingly considering strategies to optimise their exposure to SX5E dividends in maturities from Dec-18 onwards in an effort to capture the higher risk premiums in longer maturities. With implied dividend yields from long-dated SX5E dividend futures becoming negatively related to long-dated bond yields, particularly when coming from a “disinflationary” starting point, it opens long futures and call spread trading opportunities. Georgia Reynolds reports.