Discussion in 'Trading' started by GreenDog, Jul 10, 2002.

  1. long PYPL, short .39 EBAY

    Risk premium high (~ 2.5 points).

    easy money:cool:
  2. Babak


    2.5 points?

    EBAY 59.87 (*0.39=23.34)
    PYPL 22.94


    How did you get 2.5 points?
  3. nitro


    I could tell you as well, but then I would have to kill you...

  4. dereksas



    I've built similar situations like this myself, turning profitable options into straddles. Haven't done it with this pair, but if I were already in a profitable EBAY short, then I would look hard at "covering" with equivalent PYPL. If I later thought that it was time to trade long I might use PYPL then sell-out by shorting EBAY....collecting premium along the way. Of course, the premium collected assumes that the deal closes or the spread collapses for some other reason....like it did a month ago.

    Bravo... :)