Golden opportunity today For trading my BBD.Bs for BBD.As as for most of the day the delta between the two tocks was less than $0.75 per share and only $0.40 just before closing. This is a delta of less than 2 cents (pre RS) per share between As and Bs. I am looking forward to the days the As will be $3 to $4 higher that Bs so that I can sell my As to acquire back the Bs I sold.
Are there risks use this apprach? Yes there are some limited risks. When the delta is at a minimum you need to quickly sell some Bs and immediately buy As. You do not want to wait as As might start to go up quickly. I usually do it within a few minutes.
Are there limitations? Yes there are some limitations. Volume to sell some Bs is usually pretty good which is not the case for buying As. Hence one needs to carefully look at the volume for As to determine how many Bs you want to sell. Because volume of A shares is pretty low, it is usually limited to a few hundres shares for each transaction. No sense selling 1000 B shares if there are only a few hundred A shares available.
This is my approach and you might have your own. All I know is that it has worked well for me and I was able to substantially increase my Bombardier portfolio without having to invest any new funds.
Good luck to you all and I am pretty sure we will have a good quarterly report on Nov 3rd.