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Possibly HTB or the stock has a greater dividend yield than today's near zero rates. If it's the div., then the synthetic is discounted because it does not receive it. With the reversal arb the short stock side pays the div.

If the ULs cancel each other out, then you have no cover. Assuming that your statements are correct, you'd have the equivalent to a short straddle.

That's what I call the wrong price for the put. It looks like you used the price for the 60P.

If it's put on for a credit, then the graph is positive in the middle. If a debit, then negative. MTE's answer is the best because it uses the fewest contracts, but there are many other solutions. Using the IBM prices from MTE's example - use a 1:3:2 ratio on both sides - with the 1...

I think that your own analysis is pretty good. +30% is not too surprising, given the high probability trades. Yeah, you've been lucky, though. If I'm reading it correctly a recent R/R is 980/20. That's a terrible R/R and the trade has limited flexibility as it stands. It's like a time...

Are you still trading ABX ?

That's nothing, man. I won the Jamaican Lottery. Talk about lucky - I didn't even buy a ticket:p

Duly noted. As well as page 5. At the risk of fawning, GSing some of these recent markets was an excellent idea, as SV has ruled the day. I wish I had thought of that.:)

Nice trade, OP.

Thank you for your honesty, but who's the bigger fool - you or the OP? I agree that he could have managed his exit much better such as locking in a profit with a spread - but leaving some room for more. Ghost of Cutten called the silver top live nearly spot on. He bailed early on his...

So did you ever get a trade off? It doesn't look like you posted one live. Now be honest, anonymous internet poster.:p

The Junes gonna have some premium to chew through before it matches the May delta. Losses continue well below 33 depending on IV and time remaining. Are you looking at expiry values? That's not going to give you an accurate picture.

It was a great trade. Congrats. Be happy. Could've, should've, would've gonna get ya.

:D Thanks for a little dose of reality here in conspiracy land.

Batman and Robin?

Well said. The ability to trade the UL might also limit size. It can be helpful to have that option.:)

It could have been a great trade, no doubt. Ha, I remember on the old yahoo boards that long straddles were one of your first areas of interest. I think that you have to look, realistically, at what you would have done with it. What your trading plan would have been. You assume that you...

This guy's a troll, not a trader.

Yes. Who hasn't considered this or a similar strategy - and who hasn't discarded it? As sle suggested there may be overpriced options that would perform well with this strategy, but I would think that edge would be small and best left to veteran traders. Deeming options overpriced or...

:p very funny.