Reversal/conversions and box spreads are "non-risk" (Not always) spreads and not really a retail strategy but understanding them with put/call parity are a good learning tool to better understand option markets.
If understood him correctly, he said buying 1 delta call and -1 delta put, so they should be cancelling each other, leaving him w/ the short side.
" If I bought a delta 1.0 Call, sold an OTM call.(bull debit vertical) At at the same buy a 1.0 delta Put. IF I just buy an ITM PUT and ITM call that both are a delta of 1, I only profit out side that range. If I then sell a higher strike call and sell a lower strike put, I have a box.
That's why I am curious what particular stock & what strikes he is talking about when studying its risk profile in TOS. I would also understand you better if you provide a detailed example.
Sure . In his example let's use AAPL. Stock 224.25. This is long an DITM Put and DITM calls and short the worthless other options on that strike. This 50 point box is worth $50 less the cost of carry if there is no dividend and not hard to borrow.