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I'm a little slow. I learn by repetition. By the 8th explanation, it even sank into my head :)

Your first sentence explains why. How do you spell B-O-U-N-C-E ?

Not exactly :). I said that the put premium will be higher than the call premium for the same strike and same month any time the put is in the money by more than the carry cost. Calls will be higher than puts until the carry cost is covered (excepting special situations like the...

I've bot a lot of modestly liquid stocks a penny above bid or sold a penny below ask through IB. If you're best bid or best ask and someone wants to transact, you're filled.

You missed the point completely. The put premium being higher than the call premium for the same strike and same month isn't a rare oportunity. It's what happens any time the put is in the money by more than the carry cost.

One other thing. The stock must be at or above the strike price for the above to be true. If the stock is below the strike, the put price will be greater than the call price because it's ITM. That's not an opportunity.

A pending dividend, regular or special, would drive the cost of the puts up relative to the calls. A high indicative borrow rate would drive the price of the calls up. In either case, put call parity holds. It just appears distorted. The other thing to check out is that you're looking at a...

40% ? LOL. Last summer I had a Citibank preferred stock conversion that resulted in my being short 10,000+ shares with an indicative (borrow) rate of over 100%. That was over a $100 a day ($300 for a weekend). I got out of Dodge pretty quick.

Your broker can pretty much do anything he wants regardless of what you think is reasonable or makes sense. You pretty much sign sensibility away when you open your account.

Why do I have to do anything that doesn't make sense to me if the rules/laws say that I have to do it that way ??? Deal with it :)

Maybe not the best answer but a DDE connection to your trading platform would allow you to do it in Excel.

Sorry, I don't know what higher relative IV is... or at least what IV situation those words refer to. Suppose you have a $100 stock and you want to finance a 95 put with two 100/105 bearish call spreads. At an IV of .25, the 95p might be $2 and each 100/105c vertical might be $2 (made up...

He receives 10 cts per CCS. A standard option represents 100 shares so that's $10. Since he did 10 of them, that's $100 which is what you came up with by calcualting the components. Post your premiums, strikes and calculations for GS and I (or someone else) will work it through with you.

Here's a concise explanation of the covered call spread: http://www.m-x.ca/f_publications_en/options_strat14_en.pdf

Hmmm, interesting idea. My first reaction is that at higher IV, it's not going to work that well. In terms of IV, with verticals, whatever you receive for the call sold you somewhat pay for the call bought. As IV gets higher, the net premium received increases but not dramatically...

Oh c'mon. Those so called discouraged workers are voluntarily unemployed... like stay-at-home parents and people who have chosen not to work in order to pursue other interests. Just ask the gubbermint !!! :D

If I was 30 points under, I'd be more concerned with breaking even rather than be OK with holding the stock and hoping for a big recovery and future profits. With covered calls, I'd sell at least a strike lower. It would lock in a small loss but you'd have more premium coming in while...