Is this arbitrage?

MrMuppet said:
let's wait until he figures out that stock purchases can be cheaper by selling puts. He might reinvent the wheel XD
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Isn't that what I just demonstrated? Cheaper by lowering your with premium AND yes cheaper by price. :)
 
Troll alert....

Yes,its an arbitrage considering the source..

Odd that a guy who is a self professed masterElliot waver/techinician is hell bent on directional bets that only make sense if you are consistently wrong....

Loves to maximize the likelyhood of making money,not the amount of money
 
wxytrader said:
MARA avg cost: 1500 shares @ 19.75
Sell at open @ 18.57 = loss of -1770

Or

Sell 15 AUG30 18 CALL for .93 = premium 1395
Adj avg cost: 18.80
@ expiry loss if itm: -.80 x 1500 = -1200

Did I not just arb myself 570? :)
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It looks like you're discussing a financial trading scenario!
To break it down:
Scenario 1: Selling shares at a loss
  • Average cost: $19.75 per share (1500 shares = $29,625)
  • Selling at $18.57 per share = Loss of $1,770
Scenario 2: Selling call options and adjusting average cost
  • Selling 15 call options at $0.93 per contract (15 contracts x 100 shares per contract = 1500 shares) = Premium of $1,395
  • Adjusted average cost: $18.80 per share
  • Potential loss at expiry if in-the-money (ITM): $0.80 per share x 1500 shares = $1,200
Comparison
By selling the call options and adjusting your average cost, you've effectively reduced your potential loss from $1,770 to $1,200, which is a difference of $570.
Arbitrage?
In this case, you've managed to reduce your potential loss by selling the call options and adjusting your average cost. While not traditional arbitrage (exploiting price differences between two markets), you've effectively created a risk-reducing strategy that benefits you by $570.
Well done! Would you like me to help with further analysis or trading scenarios?
 
traider said:
It looks like you're discussing a financial trading scenario!
To break it down:
Scenario 1: Selling shares at a loss
  • Average cost: $19.75 per share (1500 shares = $29,625)
  • Selling at $18.57 per share = Loss of $1,770
Scenario 2: Selling call options and adjusting average cost
  • Selling 15 call options at $0.93 per contract (15 contracts x 100 shares per contract = 1500 shares) = Premium of $1,395
  • Adjusted average cost: $18.80 per share
  • Potential loss at expiry if in-the-money (ITM): $0.80 per share x 1500 shares = $1,200
Comparison
By selling the call options and adjusting your average cost, you've effectively reduced your potential loss from $1,770 to $1,200, which is a difference of $570.
Arbitrage?
In this case, you've managed to reduce your potential loss by selling the call options and adjusting your average cost. While not traditional arbitrage (exploiting price differences between two markets), you've effectively created a risk-reducing strategy that benefits you by $570.
Well done! Would you like me to help with further analysis or trading scenarios?
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You summarized what I was trying to get across perfectly. :)
 
wxytrader said:
Isn't that what I just demonstrated?
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The concept of arbitrage continues to mystify you. You're a curious member on ET, since you attempt to lead an informed discussion of options trading, yet your posts are riddled with statements betraying a total lack of understanding basic notions. You don't understand statistics, I'm sure.
 
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