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Bro, if that were true then you would short the put, buy the call, and short shares. A reversal. You're long the synthetic at edge and short the natural. Your IWM numbers are wrong bc the synthetic says so.

I am stating that you have to price the arb against the forward and not the share price. You'd be lulled into trading reversals if simply going by the share price. It's a lock. The payoff is equivalent if you're trading them at mid. Can they be a few pennies off? Sure, but they are fungible...

And what I am stating it that the share/ETF price is not the forward.

You stated earlier that the up/out CC was = a down/out short put and the board went nuts. That's the problem.

Calc the forward (IWM D1 synthetic). You don't use the shares.

The IWM July forward closed at 221.02.

OK, cool. Hope ur right.

Bro, HTF did you call this with NQs at 13650?! 1% higher? Wow... balls of steel! STEEL!

Someone called this shit at $34K BTCUSD yesterday!

Nobody worth seven figures would ask this question unless they recently fell into the money.

Execution risk on a married position/combo that is ITM (moneyness) vs. simply shorting an OTM option. Ideally you always trade the OTM when possible esp when the synthetic is one trade vs. two.

Long SPY and short the 450C = short the 450P. The difference between a call and a put? Shares. There isn't any difference in risk between long SPY/short 350C and the short 350P outside of microstructure. You keep contrasting an OTM CC position with an OTM short put. You're defining a...

You and Butt1Sex2 hit the mini golf?

NFA is running 4-5 months on tax stamps.

lucrum was such a moron. Nowhere on the 4473 does it ask if you've ever threatened to shoot someone.

If Rasmussen reports 54 then you know it's really 64%.

Biden Derangement Syndrome.

I am not referring to cash secured--I'm talking no other position (than short puts). Not referring to leverage, but yeah, a 20% move would result in a debit if it were a dot shot. I don't believe that a deep understanding of the company is sustainable when shorting puts with leverage. IOW, it's...

I haven't read the thread--tonyf reminds me of the guys at Quad. I talked to them briefly due to their access to secondaries and IPOs but decided to stay on my own at the time. A good % of the guys there were 100% positioned in short puts on deep micro-analysis (mostly banks). I personally...