Alphaman
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Posts posted by Alphaman
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How does it look now? I did a similar trade, Shorted at 6.02, shorted 7,5 puts at 3,4 and bought calls at 0.10-0.5. I made 40k in 10 days, I thought I was the biggest genius on the planet. I was all cash, so the profit should be mine right? Wrong, I was liable for the tendered shares (as you might have noticed you are too, unless you where lucky), the calls do not protect this. This trade turned out to be a loss the size of 3 months worth of profits. My account is not hurt too bad, though this really kicked my ass psychologically. But I bet I am smarter now in the future.
Well it's been a profitable short. About 30% in a week! I shorted the stock at 6.00$ last week and bought 7.50$ calls for .05$ and sold 5$ put for .90$. Closed the position this morning. Still don't know if i have been lucky not to get the borrowed shares recalled, but it worked.
Why not CCRT?
in General Discussion
Posted
It is probably safer to arbitrage the other way around, in situations where the call is overpriced, and you long the stock, write call and buy the put. But as long as you know what your doing its all good. I found this CCRT trade by accident, I just happened to notice the insane put premium screening for naked put trades. Just out of curiosity, how did you come accross this opportunity, do you actively screen for arbitrage opportunities, and if so where and how?