FWIW, my div arb is automated and I'm filling the short synthetics as 12 bps in net-edge. I've got $35K in carry against $78K received out to June exp. $7MM in share notional done manually.
What does all of that technicality mean in simple % returns for you on that trade? I'm kind of dumb with more advanced technical strategies and numbers. I just understand basic % returns
You pay margin rates on the long shares. Margin rates <5% above $1MM in port-margin account. Calc rates to ex-div or expiration (more detail needed). Fill long -> short synthetic = conversion arbitrage. Synthetic short debit fill > shares - div + rates = dividend capture.
TIMS/VV/PM margin req is trivial. $7MM in conversions (notional shares) runs about $7-8K in initial and maint at IBKR. Your return is massively-dependent on your initial edge. Return on net (received - carry) is like 4-500%. The only costs are comms and the stock loan. Return on initial margin. There is some var to margin as you get close to exp.
You still didn't answer the basic question of what % return did you make on that trade. Just more technicality
I did, but I did so in the next post. You are asking the wrong question out of ignorance. Take a Valium, macbookproho.
I'm not suggesting you're going to make 4-500% return on net liq. The only risk once executed is a change in rates or dividend. The conversion is an arb in which you're charged 1-2 bps in margin. I generally stop doing it manually once I'm paying 1%/month to carry them. It's time consuming and is essentially a MMer function.