Yesterday, the LOF fund hit the limit-down, with a sell order of 4.86 million shares firmly blocking the limit-down line, making it seem like the board will never open. Many people panicked when they saw this scene, but if you truly understand the logic of premium arbitrage, now is actually an opportunity.

Currently, the premium rate has retraced to 44%. From a yield perspective, an investment of 500 yuan can still earn 200 yuan. This sounds good, but reality is a bit more complicated. Based on technical analysis, it is expected that it will take another 2-3 limit-down days to digest the premium to a reasonable level, around 10%. By then, the same 500 yuan investment will yield about 50 yuan.

The time window is crucial — next Monday (the 29th), the base amount will be restored to 100, so these two days are indeed the last chance to operate. Instead of sitting and waiting, it’s better to seize the window.

Many people get excited and impulsive when they see a limit-down, but there’s really no need. As long as the underlying asset price remains stable, even if the premium eventually drops to negative, you can choose to redeem at net value on the subscription interface. The risk is controllable. Moreover, based on historical data, there has never been a situation where the premium jumps directly from such a high level to negative.

If the psychological pressure is too great, the wise move is to place a sell order. Set a order at tomorrow’s limit-down price of 2.524 to queue up. If it gets executed, the profit is directly in your pocket.

Finally, I want to emphasize: don’t think about bottom-fishing. This is completely opposite to stock trading strategies. The premium will eventually revert to net value, a pattern that has been proven countless times by indices like NASDAQ, S&P, crude oil, and other assets. What we profit from is the difference in the premium, which is the real risk-free arbitrage. Don’t overcomplicate simple things.