No they don't. The same-strike bull call and put spread define the box arbitrage. A 100/105 bull call spread at 4.00 debit reflects a 100/105 bull put spread at a 1.00 credit, +/- a few pennies (related to the microstructure and cost of carrying the $5 position). Long the call spread at 4.00, long the put spread at 1.00 = zero arb.
I'm sure that works for some people but I tend to be directional, and I don't generally have patience to hold to expiration (or even close). The reason that is relevant is if I'm long both sides then I get stuck trying to figure out when is enough profit on one side (expecting the other side to expire worthless) - Generally it's not worth it (on risk reward basis) it to close a losing position. The market has been over shooting everything for several years now - pick a direction with a long enough expiration and be patient.
You are hydrocephalic or trisomy. ITM, ATM or OTM has no relevance. It must be f*cking magic that dictates that a 4.00 bull call vert relates to a 1.00 bull put vert (same-strikes).
For the hydrocephalopod: Bull call vert at $0.50 fairval Bull put vert at $1.99 fairval Strike differential by inference: 2.50. Buying the call vert and BUYING the put vert at mid = 2.49. The resulting position would be long the box at one penny off parity. Excluding comms, excluding financing. Long the call vert at 4:1 reward Short the put vert at 4:1 reward Ooooh it's magic! Anyone with a brain can solve for the put vert when the call vert is known. Of course that excludes qqqoptions. The OTM call and ITM put spreads are used as ATM spreads will be roughly equivalent in premium.
Whistling leaf I found that interesting about 50 + more long term positions in Vertical spreads. Care to be a bit more specific on the technical details for us novices who have not tried that yet? I mostly trade the QQQ as I´m a beginner. But in a month, the QQQ will swing up and down 5 strikes. My understanding is a Vertical will need 3, to 4 strikes to profit. How would that fit in with your slower moving months you are buying in options. Could you elaborate please. Are you doing Leaps, or Quarterly like that? Really interested as I´ve no experience with Vertical Spreads.
Since Atticus says it makes no difference if you are OTM, or itm OR atm. I was just wondering. I did do some OTM trades a week ago ( and lost ) but they don´t move as rapidly in price as ITM options. So if you put the BOX on two opposing Verticals and made sure they were at least 2 nd strike ITM, I would think you would get some rapid profit there? I think the BOX as I recall reading it, was a Vertical Call Bull Spread and a Vertical PUT Bear spread? I was never sure if they were parallel to each other, or I guess not, if both were ITM. I sort of wonder how much the market would have to move to give you your profit and you closed the Vertical? If this sounds like a dumb question it is because I am dumb.