Glad this trade worked out as expected.
This has been one of the few high risk-reward arbitrage opportunities during the recent market correction.
The arbitrage window hasn't fully closed yet. As of today, the ADR premium is still around 29%, with little sign of meaningful convergence.
However, once the ADR conversion mechanism officially opens on July 29, the supply constraint is expected to ease, allowing the premium to converge much faster. As a result, this arbitrage opportunity will likely begin to disappear.
If you're still planning to participate, now might be your last chance.
This is pretty interesting…
Traders are capitalizing on the spread narrowing through SK Hynix ADR
This is practically dual side hedging and profiting off the spread converging which can be classified as relatively strong probability
One of the more intriguing strategies I’ve ever seen