TECS Options Arb

[guru]

This is not an arb, unless you can lock in a fixed-price borrow on TECS from the Jan to June expiration.

I wouldn't hold it past January.
And currently the market is underpricing this combo, while maybe tomorrow it won't.

 

[BlueWaterSailor]

Didnt mean to open a can of worms,was simply trying to say that I often find myself initiating a position with a simple fly,that inevitably turns into a 30 plus leg monster...

Gotta say: I love discovering things like this, because they give me hope for what I can learn in the future. From my current perspective, managing such an animal would be damn near impossible (delta, sure - but if I have to manage the other greeks, how the ever-loving hell would I do it without screwing up everything else?) And then some pro comes along and goes "what's the problem? We do crap like this three times a day, and twice that on Sunday. No big deal."

OK, phew. Means it's humanly possible.