The existence of a dividend isn’t the defining feature that explains why put-call parity might not hold. P-C parity holds for European style...
This is hilarious :-)
I’m a (seeing this) little late . I note from above that the $90 strike had a 10 cent spread. It would’ve been good to see what the $85 strike...
Had the stock (continued to) tanked: 1. the purchaser of those 2 puts would've thanked their lucky stars :). 2. You would be relieved to only be...
You beat me to it :-)
"The long (call) strike provides an in-built hedge." The above was the answer to your question. The most you can lose is the premium paid...
Purchasing a synthetic (long) and a long put is cost ineffective. Replace the 3 legged position with one (a call option at the same strike /...
Sure. The intent behind the derivative overlay that an airline, grocer etc may employ will typically be to hedge unwanted risk (e.g. to crude,...
His comment is in the context of farmers, airlines etc. The derivatives are an overlay to their underlying business of selling produce or...
Lol. Thanks for your pity :-). It's been a busy week in the real world and responding on an internet forum hasn't been a priority. Nice...
You're quite a character Tommy. 1. I stand by the statement; theta is not a edge. This platform is (supposed to be) partly educational and to...
Retailers - cover your risk and sleep better at night. It does wonders for the emotions and psychology :)
The whole point of trading / investing is to make money. Many on here sell OTM puts for pennies on stocks 'they like to own'. That's fine; and to...
Sure. I guess my point is the same rationale applies equally to putting on a credit spread. Was curious as to why you viewed that differently
Hi You mention that the purpose of selling naked puts is to purchase stock at a discount (in contrast to selling put spreads). I'd be grateful...
That conditionality is awesome :-)
In fairness to @punisher, I suspect it is you who are playing with words. There is a difference between (1) the pooling of risks (a fundamental...
The only downside will be that the $ dollar profits will be lousy :-)
+1. My 2 cents: Selling wings have terrible risk characteristics. Sure, the risk premium may, at times, be attractive but I suspect with this...
I suspect care should be taken when extrapolating research findings. The results are likely based on an 'always in' / indiscrimatory basis. If...
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