You are ignoring the fact that the money you paid to buy the stock could be earning $3 in a risk free investment. That is the "cost to carry"...
Sorry, you are right it was not you who calculated the cost of carry. Anyway, I don't see how the $3 arb is real because the cost to carry the...
I don't understand how you can agree that the options are mis-priced. A couple of messages back you calculated the carry cost at 4.1%. If the...
Strike-Putcredit=breakeven 75-10.8=64.2 So on the surface the original scenario looks like it has less risk, but if you add in the cost of...
Oops, as other posters have suggested my break-even figure is wrong. My revised figure is $62.7 as Profitaker has already stated. Investment...
I would have guessed that IB prohibits you from drawing down margin requirements and therefore would not have let you buy the call. Am I...
If Apple falls below $50.40 at expiration your paper loss will be the difference between $50 and the price of Apple stock. In addition you will be...
Because your shirt has a practical, useful purpose. Stocks have no practical purpose, it's just a piece of paper. You can't eat it, wear it, nor...
I'll sell you a 1% share of my car for 100 times par value with only a few caveats: You can't ride in it, you can't tell me what to do with it,...
Well it's either gambling or investing and my vote is gambling. I might be willing to call it investing, but my definition of investing is...
I just remembered that IB doesn't pay interest on the first $10k and therefore depending on your total cash balance the total return can be a lot...
Are the AAA corps paying more than IB's normal cash interest rate? As I recall IB currently pays about 4%. Don
Thanks, craigatelite, I'll have to take another look at Muni's, but I am still leaning toward TIPS which yielded about 5.8% in the last year. With...
Don't forget about the advantage of being able to margin bonds. If you don't care about margin than maybe CD's are okay. Don
Thanks, it worked. Looks pretty good, but I am having trouble with the date filter. It keeps telling me to enter in the YYYY/MM/DD format which I...
Good, I'm happy to hear that IB has decent bond capability. Can you give me a clue how to access their scanner or how to enter a CUSIP number?...
IB's bond capability is pretty lame. I don't even think they have a screener, at least I could not find one, and they only trade corporate bonds...
I don't think there is much difference between the two in a rising interest rate environment. Of course TIPS are tradable in the secondary market...
I think I know what you are talking about, but I don't know what you mean by a "B label bond". Perhaps you are talking about a credit rating....
True CD's have some pretty attractive rates, but for the same term generally bonds are a little higher especially if you consider the state tax...
Separate names with a comma.