Hello Traders, First of all, I know this question has been asked many times but I just need some clarification. Almost all the answers here said that there is no put call parity (the difference between paying the premium to buy call and selling put at the SAME strike price, then shorting the underlying to create the reverse arbitrage). But I see it almost everywhere? Right now the FX pair USDJPY has had almost verticle climb over last two years and hence Put options are way more expensive than the call option. I am not new the trading spots and futures however I am new to the options. Am I missing anything? Right now the markets are closed but I have done over 100 backtest on thinkorswim exploiting this exact thing and making profit every single time. TOS also have this IV skew scanner, and the premium also takes into account the IV so why would there be not any premium difference? Assets have directional bias all the time like USDJPY right now, EURUSD when it was crossing down 1.0000 level, even spy. FYI, I have a way to avoid carry cost on almost every asset there is so I do not take it into account, is that where it balances out? I will post some screen shots here to show what I did can anyone please explain to me why would that not work in the real trading, please. In the attachment I have done just one example and showed my steps. I have also made sure to avoid the dividend date
It’s put call parity. You are missing something in your calculation. You are well versed in futures: the call - put - stock = futures price.