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The strikes are at 15 and 40. Last print was 37.85, and it was up right around 40 this morning.

All, I put on a short box spread on UNXL for 0.45 credit above the difference in strikes, but now the stock shot up near my upper strike and I'm down almost 2.50 per share. Super noob mistake, I know - I put the position on way too big and now the temporary loss has eaten up all of my...

x2. Atticus, your posts have been extremely helpful in my options education. Much appreciated. Cheers! :D

Here's a classic one in a different vein. http://www.riskdoctor.com/Downloads/OTTHRLITE.pdf

glad I could be of service! ;)

OP - Put another way, how likely is it that these exact options are consistently mispriced, essentially forever? Much more likely that some options are mispriced relative to some other options *some* of the time, and you can trade that. That *some* of the time being every Thursday seems...

Not a specific link, but you can find a number of gems (that cover e.g., variance swaps, like in your link) by google searching for: goldman sachs quantitative strategies research notes pdf One result in particular, which is mentioned in the CBOE's white paper on calculation of the VIX...

Those spreads are critical. Theoretical values and last prices don't matter if you can't actually execute the arb trade(s) for a net profit.

Lemme see if I can explain the question a little better. Sprint is currently in the high $5 range ($5.92 right now), and it's been hovering there for months. Basically, if the deal goes through, SOME shareholders can cash in at $7.30 a share and others will own diluted shares of the new...

If you struggle with the quant finance maths at first, Neftci is a good, soft intro, and so is Wilmott. For me, at least, intuition about how trades/markets work is a different part of my brain than building a base of competence with stochastic calculus/greeks. MJ

Above post has the option chain, attached to this one is a screen print of the salient parts of the announcement. Here is a link to the rest: http://newsroom.sprint.com/article_display.cfm?article_id=2420 Sorry for the delay... apparently first-timers have to wait a while to get their...

All - Long time lurker - first time poster. I noticed an apparent arbitrage opportunity (PCP violation) in Sprint (S), and it's not based on dividends. Rather, I think it has something to do with their pending merger. If someone were to try to arb this via reverse conversion (short stock...