Guys I know I am crazy and ignorant. But I'm telling you. There are no buyers for this thing, (except beerntrading)
If hard to borrow with high borrow cost results in a higher put premium then does than mean that the calls will drop in price as a put/call parity offset?
Chances are, you might have gotten a fill on the Feb $15 call for 5 cents under parity. IB had shares available this week. However, I get a better deal from my bookie than what they want for borrowing it.
That's the time to buy! Shorting the put and buying the call on this thing let me get it for a deep discount. Picked this one up in the same round of buying as GE and M, and the same way...actually took the shares on M though, as it went ex-div today. I'll keep rolling the RDFN combo until the big earnings hit, and pick up most of the hard to borrow along the way. Hint: they have enough cash to stay afloat until I can recover the full value of the shares in net premium.
Sorry, I wasn't thinking of ITM trading at parity. Didn't make that clear. For options with time premium, say ATM, will that occur?
Yes, in my experience it seems that generally the at calls will go down and the at puts will go up the "harder" to borrow a stock becomes.