Double Diagonal Strategy: Put&call on low volatility . Too good to be true?

Discussion in 'Options' started by Fedders, Oct 25, 2015.

  1. Fedders

    Fedders

    Attached is an image I took of a strategy I'm considering on a low volatility stock.

    The security (TCB) is $15.58.
    I'm selling a Call/Put @ 15/16 to expire Nov.15th
    I'm buying a Call/Put @ 15/16 to expire Dec.15th

    The Bid/Ask is -1.55/-.45 and I am attempting to get this at the mid price of -1.00
    That's a $100 credit to my account.

    From what it appears, I can't lose money on this deal if I were able to buy this.

    Does this seem too good to be true?
     
  2. Yes if you CAN buy this in Real Market
     
  3. This forum should be called elite options, there are so many options nuts on here theses days trying to magic free money our the markets
     
    lawrence-lugar likes this.
  4. I see that position as a $55.00 debit based on the bid/ask, but you might get a slightly better fill. That's a far cry from a $100 credit.




    :)
     
  5. xandman

    xandman

    Impractical. Best to trade liquid options.
     
  6. Fedders

    Fedders

    I'm confused as when I enter this position into my order it comes up as a $100 Credit to my account.
     
  7. Fedders

    Fedders

    Hence the question, "too good to be true?"

    If this isn't the place to ask questions concerning options, I can go elsewhere.
     
    Last edited: Oct 25, 2015
  8. Amen, that's one of the cardinal rules of trading...Liquidity :confused:
    make sure it's a Liquid market. be DEEP
    [​IMG]
    (you're kind of F'ed in trading...if you're not Deep.)
     
  9. You won't get filled in the middle.
     
  10. Noobs always think there's free money in the options market. Best to humor them.
     
    #10     Oct 25, 2015