Tit you know?... :-)

[earth_imperator]

Spreads with the same params for Call and Put have at expiration the same payoff
Example:
Spot=2, DTE=90
Short: Strike=5, IV=150
Long: Strike=3, IV=150
Applying this to Puts gives the same payoff at expiration as for Calls.


For Calls this relation has to hold always: Premium >= max(0, Spot - Strike)
If not, then the quoted Premium is wrong/fake/fraudalent.
Ie. this formula helps to detect buggy Bid or Ask.


For Puts this relation has to hold always: Premium >= max(0, Strike - Spot)
If not, then the quoted Premium is wrong/fake/fraudalent.
Ie. this formula helps to detect buggy Bid or Ask.

...

 

[maxinger]

Remember to take your medicine.


The Tit title and the content are not in sync.

 

[earth_imperator]

Remember to take your medicine.

Trying to spam the thread again?

 

[Frederick Foresight]

Worthless thread. I was sure there was going to be a titillating photo.

 

[maxinger]

SHIT !!!!

No Tits!

No hot babes!

Just boring Spreads!!!!!!
Just Call here and Put it there!!!!!

What an useless thread!

Next tittie thread please!

 

[earth_imperator]

In case you titn't know:
"Slippage" in financial markets is also called as "Implementation shortfall", and vice-versa