Rare arbitrage profit from call vs put prices: explain why not being taken?
- Thread starter Option Trader
- Start date
All I could say is that real traders post quality posts, and "others" post silly posts.
Humble people have less ego problems.
I am going to surprise you all and give you the name of the stock: Although it's way down today and the arbitrage oppty not always there, take a look now at CTIC March $1 strike price, calls & puts.
As for you "non-believers", you can check with IB, and will see there are shares available to short, and I believe that means there is no borrowing cost (but stand to be corrected). In addition, you can check with Locate Stock, and they will tell you they will lend the shares at 1/2 cent per share.
Minimally, answer for me a SIMPLE question: why don't any of the longs simply sell their stock, buy the March 1 calls, and sell the March 1 puts.??
Okay they are not in big supply this second, however, they sure were earlier today, and all of last week, when the stock price was closer to the strike price!
I am going to surprise you all and give you the name of the stock: Although it's way down today and the arbitrage oppty not always there, take a look now at CTIC March $1 strike price, calls & puts.
As for you "non-believers", you can check with IB, and will see there are shares available to short, and I believe that means there is no borrowing cost (but stand to be corrected). In addition, you can check with Locate Stock, and they will tell you they will lend the shares at 1/2 cent per share.
Minimally, answer for me a SIMPLE question: why don't any of the longs simply sell their stock, buy the March 1 calls, and sell the March 1 puts.??
Okay they are not in big supply this second, however, they sure were earlier today, and all of last week, when the stock price was closer to the strike price!
Well it seemingly couldn't or shouldn't be more than the street cost such as from Locate Stock, which charges the clearance firm only 1/2 cent per share, and which is seemingly the amount passed through to the customer (at least with certain brokers).
based upon your incorrect assertions on this thread and the other thread about being short after option exercise
http://www.elitetrader.com/vb/showthread.php?s=&threadid=190383 and on this thread if I were you I would not criticize others.
Please educate me (and btw, this is what I am asking for in the title of my thread), and be specific!