Tit you know?... :-)

Spreads with the same params for Call and Put have at expiration the same payoff
Example:
Spot=2, DTE=90
Short: Strike=5, IV=150
Long: Strike=3, IV=150
Applying this to Puts gives the same payoff at expiration as for Calls.


For Calls this relation has to hold always: Premium >= max(0, Spot - Strike)
If not, then the quoted Premium is wrong/fake/fraudalent.
Ie. this formula helps to detect buggy Bid or Ask.


For Puts this relation has to hold always: Premium >= max(0, Strike - Spot)
If not, then the quoted Premium is wrong/fake/fraudalent.
Ie. this formula helps to detect buggy Bid or Ask.

...

 

Remember to take your medicine.


The Tit title and the content are not in sync.

 

Trying to spam the thread again?

 

Worthless thread. I was sure there was going to be a titillating photo.

 

SHIT !!!!

No Tits!

No hot babes!

Just boring Spreads!!!!!!
Just Call here and Put it there!!!!!

What an useless thread!

Next tittie thread please!

 

In case you titn't know:
"Slippage" in financial markets is also called as "Implementation shortfall", and vice-versa