lnkd put call parity out of wack

Discussion in 'Options' started by newguy05, May 27, 2011.

  1. sle

    sle

    Not true. If you own the stock, you will get paid the borrow, so there is no edge in trading a synthetic forward at all.
     
    #11     May 28, 2011
  2. m22au

    m22au

    In theory, a LNKD stockholder should get paid the borrow interest rate. However in practice not all brokers will pay this to the customer (or they might only pay a small fraction of the full borrow interest rate).

    Hence why for some customers it makes sense to create the synthetic long.
     
    #12     May 28, 2011
  3. FSU

    FSU

    I have never gotten any money from being long stock. If you do I think your brokerage firm is unique.
     
    #13     May 28, 2011
  4. rew

    rew

    I do sometimes make money being long stocks. But just about as often I lose money doing the same. It's enough to drive a man to trading options.
     
    #14     May 28, 2011
  5. KPS21

    KPS21

    The borrow has loosened up considerably in LNKD. Still 20-30% though.

    I am not aware of any arrangements for small traders that allow them to lend out the stock. Does anyone know a broker that pays a portion of the lending income to the holder? I figured that would only apply to very large accounts.

    kps
     
    #15     Jun 1, 2011