Arb Opportunity with chesapeke?

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Nutinsider

Hey guys, havent been here in a while, been out of town a lot lately.
Hope all is well.


Quick question.

Would love to know you thoughts on this message a friend sent me:

"Buy the Aug 17 calls with 24 strike in CHK Sell the Aug 17 puts with 22 strike you profit the difference if no movement 22-24 in stock. If stock fall below 22 you give up your profit or take position in good stock. If above 24.20 you making mad money my friend. Three reasons to own it, Carl Icahn, Nat Gas prices rising, Insider Buying huge in past month."

thank ya
 
Quote from Nutinsider:

Hey guys, havent been here in a while, been out of town a lot lately.
Hope all is well.


Quick question.

Would love to know you thoughts on this message a friend sent me:

"Buy the Aug 17 calls with 24 strike in CHK Sell the Aug 17 puts with 22 strike you profit the difference if no movement 22-24 in stock. If stock fall below 22 you give up your profit or take position in good stock. If above 24.20 you making mad money my friend. Three reasons to own it, Carl Icahn, Nat Gas prices rising, Insider Buying huge in past month."

thank ya
More...

Re NG prices rising, some see it differently. I would look into the correlation between NG prices and stock price and decide accordingly. Good luck!

http://www.futuresmag.com/2013/07/1...m_medium=eNL&utm_campaign=FUT_eNL&_LID=276018
 
Quote from Nutinsider:

Hey guys, havent been here in a while, been out of town a lot lately.
Hope all is well.


Quick question.

Would love to know you thoughts on this message a friend sent me:

"Buy the Aug 17 calls with 24 strike in CHK Sell the Aug 17 puts with 22 strike you profit the difference if no movement 22-24 in stock. If stock fall below 22 you give up your profit or take position in good stock. If above 24.20 you making mad money my friend. Three reasons to own it, Carl Icahn, Nat Gas prices rising, Insider Buying huge in past month."

thank ya
More...

thats a risk reversal, and in no way an arb, just fyi
 
Quote from Nutinsider:

If stock fall below 22 you give up your profit or take position in good stock
More...
This is not arbitrage. Your friend is a snakeoil salesman. Tell him I have some "good" pets.com stock to sell to him.
 
If the stock tanks, it's like you're buying stock for $21.50 with all the loss associated with that.

If the stock goes up, you need quite a move for the 24 calls to really pay off.

In the middle, you make maybe $.50; and I can think of plenty of other ways of making $0.50 without the risk of the stock.
 
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