What am I missing about put-call parity and American style options?

markuzick said:
My other issue is that put-call IV for ATM options on non-dividend paying stocks will sometimes diverge by a large margin due to bullish/bearish sentiment. Are you saying that this phenomenon is too fleeting to capture?
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I've never been able to trade on it, but why not give it a try? Just short the overpriced put/call, buy the underpriced, and enter into a long/short on the underlying and you lock in the difference between the put and the call. If it doesn't work let us know, and if it works we understandably probably won't hear back from you!
 
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