Buying/Selling Options

Quote from Maverick74:

that lunatic Scott Kramer
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Let me be the first to admit that I have indulged in some gross silliness on various forums, but it is always with the implicit permission (as evidenced by return silliness) of my "victim", and never during a serious discussion on strategy or whatever.

But the puerility I have witnessed from this charmer (SK) is an absolute disgrace. As forum leader one would expect a higher standard of behaviour than what he has posted over "there".

It was, quite frankly, jawdroppingly childish from someone of his standing in that community; leadership is explicit in being the forum leader. It is no wonder the standard of discussion, when not brown-nosing Kramer, Medozza et al, is below gutter level. Their "role model" indulges in the absolute lowest form of argument - ridicule.

I repeat, it's a bad show.
 
Quote from Maverick74:


My point about put/call parity only working at inception and expiration is the very principle put/call parity is based on. It's not that you can exploit it in the interim. I even gave an example on MO stock. Where MO pays a .75 dividend. And a naive trader who does not know any better puts on a reversal because he thinks he has a risk free profit by selling the puts and buying the calls and selling the stock. Obviously the .75 dividend is priced into the reversal and he will have to pay it through the short stock. Well, let's say out of no where, MO cancels their .75 dividend. All of a sudden this trader makes .75 on the trade risk free!!!!!! He screams from the rooftops, put/call parity broke down!!!!!! Uhhh, no it didn't. MO canceling their dividend did not break down put/call parity. You and they might both argue, well hey, anything can happen man between inception and expiration and that is my strategy. And I would say bullshit.
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Well explained, thank you Mav.

Ursa..
 
Quote from MajorUrsa:

How do you know? And related to what?

Arb has been gone on and off before. I think nothing serious.

Ursa..
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I happened to be reading ET when it happened. I missed some of it, but what happened (AFAIK) was yet another blowup with Magna.

And as we all know, Mag takes no crap, no prisoners, and will ban you, your spouse, your kids, your dog, and all your deceased relatives. :D

Look for risk over at Blogspot. If I post the link, you probably will never see it in time.

Good trading to all. :cool:


edit: just noticed he has moved to fattail.org

also, he still reads ET and shows up every now and then under different handles. but there are only so many isp's/email addresses out there! :p
 
His bio:

"Undergrad degrees at 17, grad-degree at 19. Short sell-side stint at Solly while living in Tribeca; med school; back to trading via index arbitrage as a JBO. Did 300%+ from 1998-01 in crossed market and index arbs with the aid of SDOT and an IBM SP2 SC. Started with a stat-arb fund [still associated] and a small NYC fund with no prime brokerage. Better experience with a large Chi-fund, which led to an offshore feeder... and here we are"

Smart guys are eccentric?
 
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