iron cockroach
- Thread starter daddy'sboy
- Start date
How do you do an 8 leg trade? I use OX and I am only able to do 4 max.
buy two cattle futures? (ps. i think cockroachs only have 6 legs)
send me 50 grand and i'll devise a titanium millipeed. That fucker will have a thousand legs.
It's a synthetic Killer Bee.
Or was that a synthetic hornstraggle-swap?
Or was that a synthetic hornstraggle-swap?
OK, so it is a waste of time but how do you do it anyway?
Shamelessly stolen from the Optionetics forum. I hope that doesn't break any rules (ours or theirs), it's a public board after all.
The six different legs of an iron cockroach are:
1. One long call at strike X
2. One short call at strike Y
3. One long put at strike Y
4. One short put at strike X
5. Long 100 shares of underlying
6. Short 100 shares of underlying
http://www.optionetics.com/forums/topic.asp?fid=191&id=39490&page=4
The six different legs of an iron cockroach are:
1. One long call at strike X
2. One short call at strike Y
3. One long put at strike Y
4. One short put at strike X
5. Long 100 shares of underlying
6. Short 100 shares of underlying
http://www.optionetics.com/forums/topic.asp?fid=191&id=39490&page=4
Long synthetic at X
Short synthetic at Y ... Box arb. Long the y-x debit at a premium to y-x. How do we make money? Volume.
Long 100 shares with a short against the box [not the above]? How can you carry 100 long and short in the same account? WHY? The only thing shameless is that they're suggesting a trade that's guaranteed to earn less than LIBOR. I can't really respond any further about the long/short 100 spot. That's ridiculous.
Priceless....
I understand the calls and puts and that is what I pictured, however I agree, how the hell can you be long 100 shares of the same thing you are short 100 shares of?
That means you have no shares.
That means you have no shares.