Interesting situation in an Option

Yeah,

Of that I am as certain as the sun rises in the east and sets in the west.

nitro

 

You know, I forgot one thing - you have to _sell_short_stock_ against the long call! That means that in order to get into this position, you have to first offer the stock for sale, or wait for an uptick.

This strategy may become more viable when the new rules for very liquid stocks come into effect in January '04.

Finally, I think this would be a more profitable strategy (fatter premiums) in a higher interest rate environment when the calls would be more expensive - in other words, the arbitrage would be greater...(I think)

nitro