Put/Call Parity for EGO?

Discussion in 'Options' started by heech, Jun 22, 2009.

  1. heech

    heech

    Hi,

    Just curious if anyone has insight on why AMEX-traded EGO doesn't seem to have put-call parity. This isn't due to a hard-to-borrow stock, either... especially since in this case, call IV is far greater than put IV.

    EGO, $8.20
    July $7.50 call: $1.1 b, $1.2 a
    July $7.50 put: $0.20 b, $0.30 a.

    Even if you hit the bid on the call and the ask on the put, you would still have $0.10 of arb profit on the result.

    (The same thing exists with AMEX-traded MFN as well.)

    The above prices are all from EOD data, so maybe there's just something quirky here with the AMEX-listed stocks?
     
  2. EOD data can be notoriously inaccurate, particularly on thinly trded options. If you haven't already done so, check it in real time