Option arbitrage question

[JackRab]

The devil is in the details and the details are in the 5% 12-year carry and the LT dividend of 2.5% in the S and P.

I was actually thinking with an effective dividend of 0, seeing it as if it's reinvested at index-level... like in the DAX... index stays at price including dividends.

 

[JackRab]

@sle Did you work with Sam Wegbreit at MS or are you younger than that?

that doesn't look correct mate...

Stock price at current level = 1000 not 1822

Can I sell that 1822 call to you at 297?

 

[sle]

Did you work with Sam Wegbreit at MS or are you younger than that?

I think he left in the late 80s/early 90s when he founded Oak Ridge, no?

 

[ajacobson]

Exactly. Older guy - my age. When you mentioned MS - he got into all kinds of fun doing index arb.

 

[sle]

Exactly. Older guy - my age. When you mentioned MS - he got into all kinds of fun doing index arb.

I never mentioned MS but no, we did not overlap but I have met him socially a few times

 

[ajacobson]

I inverted the put/call. Sorry everyone.

 

[JackRab]

I inverted the put/call. Sorry everyone.

We'll let you out on that... clearly mispriced.

 

[sle]

We'll let you out on that... clearly mispriced.

My best impression of an IB sales coverage: “You’re a good client and a solid friend! Let’s go to Bobby Vance next week?”

 

[JackRab]

My best impression of an IB sales coverage: “You’re a good client and a solid friend! Let’s go to Bobby Vance next week?”

I don't know what Bobby Vance is, but $-value of trades I let go on misquotes by brokers is eyewatering...

That said... I've been let out a few times as well

 

[sle]

That said... I've been let out a few times as well

Bobby Vance is a steak house - kind of a staple NY broker dinner. I’ve eaten there more than I can count and I am vegetarian