Risk-less collars and margin

Discussion in 'Options' started by SoCalOptionsWriter, Jan 2, 2024.

  1. Darn. I was hoping ….
     
    #21     Jan 2, 2024
  2. Matt_ORATS

    Matt_ORATS Sponsor

    ZIM is probably hard-to-borrow as Dest warned.
    Here's our Monies endpoint that solves for residual yield to line up the calls and the puts. The confidence reflects how many options there are in the expiration and wide the markets are.
    Your expiry, Jan 19th has an implied borrow of 13%
    [​IMG]
    https://gyazo.com/25fa3ee180d71370d01f8ac22478cab8
    It has been that way for a while:
    [​IMG]
    https://gyazo.com/16949a185174a9cd6a61cccff7ca5e82

    We can scan for these.
    Here's a list with stock price > $5, confidence > 50%, optionVolume > 200, and a hard to borrow implied > 10%. ZIM is the last one.
    [​IMG]
    https://gyazo.com/12dab9142e085573e0c5b3931fb15132

    Then you can send this list automatically to our options scanner and use the custom setup to make your reversal.
    [​IMG]
    https://gyazo.com/33af0ba10b6b16e73c38cf473559228f
    ZIM comes in at #20 and #21 in this scan. (I limit the S% our smoothing value vs mid market value edge since some of these are very wide.)
    [​IMG]
    https://gyazo.com/400f7c4d81a0bf237a23b6fa5e2b95a2

    Here's what the payoff picture looks like. As mentioned above, 100 delta.
    [​IMG]
    https://gyazo.com/ff2b2b333be9d13cba58e15a348a361f
     
    #22     Jan 2, 2024
  3. Matt, I appreciate the work here, but I am a humble retail guy whose eyes glaze over at what looks like stat overkill to me. Are you saying I can hit a button or two and a scan the whole stock and futures universe for real time conversion/reversion plays will appear?
     
    #23     Jan 2, 2024
  4. Matt_ORATS

    Matt_ORATS Sponsor

    Yes, you can do that in the Options Scanner using the Stock Scanner for stocks.
    However, you have to understand hard-to-borrow. For example, this trade only makes sense if what you are being charged to short ZIM is less than you make on the trade. One way to do this is to find what the rates are from your broker. IB has a page that does this.
     
    #24     Jan 2, 2024
  5. Yeah i wasn't that interested, personally, in ZIM and or even shorting shorting. Was looking for longs and doing a one to five day conversion for pennies and low margin/commission.
     
    #25     Jan 3, 2024