No Risk Stock Option Dividend trades

Discussion in 'Options' started by Johnny Boy, Mar 17, 2025.

  1. Effort? All stock trades require some effort
     
    #31     Mar 20, 2025
  2. newwurldmn

    newwurldmn

    I was surprised you were too when I looked at the OI. Most options on that line weren’t assigned.

    You lost 5 cents, plus the opportunity cost of interest during the time frame. And you are still long a put that has some value.
     
    #32     Mar 20, 2025
  3. Yes, the 5.00 was after I sold the put this AM for .77. Love Fidelity my broker as they always get me great prices
     
    #33     Mar 20, 2025
  4. I thank you for your replies to my strategy. I had quite a few winners but am trying harder to get more OTM CC's very difficult to find with the appropriate put to justify it with possiblity of assignment
     
    #34     Mar 20, 2025
  5. namche

    namche


    It's not worth the effort to explain the conversion arbitrage in more detail.
     
    #35     Mar 20, 2025
  6. LOL> Both of your posts to me say its not worth the effort. You and I know its code for you dont have a clue.
     
    #36     Mar 21, 2025
  7. namche

    namche

    you don't have to take my word for it. The clueless guy at the table is the guy trading conversion arbitrage and thinking it's dividend capture.

    It's not worth my time, but here. Continue to waste your time and money:

    https://www.rivalsystems.com/news/a...tegies-conversions-reversals-boxes-and-rolls/
     
    #37     Mar 21, 2025
  8. newwurldmn

    newwurldmn

    #38     Mar 21, 2025
  9. So whats your point? I see the definition. Is that it?
     
    #39     Mar 21, 2025
  10. newwurldmn

    newwurldmn

    my point is that it’s not an arb. You are taking on risks you don’t understand.
     
    #40     Mar 21, 2025
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