saying like that is like saying: "Hey, you can't sell your bicycle here because i want to sell my bicycle." This is a marketplace and we can bid/offer whatever tf we want. At the end of the day, it's the market participants who decide what the market price is. BSM is a rulebook not a strategy. If the market wants they can price calls more expensive than puts. If you are convinced that current puts are constantly overvalued then the easiest thing for you is to keep on selling them. Trying to ban something is way over and above you that it's actually rediculous. The fact that you didn't understand the arb trade between regular and yours just makes it worse. (Y)
what ??? You do realize that when stock price falls your synt (which you bought at 0) goes to negative ?
I said the exact opposite: current Puts are undervalued (after the initial pricing, and especially at expiration). I did my analysis and confirmed the objections, ie. the problems, in this posting of mine: https://www.elitetrader.com/et/thre...w-to-profit-of-it.348911/page-21#post-5185830 So what else do you want, man! Just read the postings a little bit more carefully.
thecoder hasn't given up! thecoder works hard to bring final & eternal justice to the world. To the trading world that is Soon in this theater...
Yep, my typo. Regardless, just make everything the opposite. Point was, an Arb is when you have different price for the SAME product. You don't need math to figure that out. You clearly proposed a different value for an exisiting product. To make a market for it, someone must constantly take beating. You ? yep, i didn't see that. Again, your title asks how to profit. The easiest way is to buy something you are convinced is undervalued and sell something that you are convinced is overvalued. You don't need to go more complicated than that. Market will surely let you know how right or wrong you are.