Discussion in 'Options' started by mskl, Jan 3, 2019.
SHLDQ JAN $15 puts are $15.65 bid (lol)
Can't trade it as only "closing trades allowed"
That's the ask...
does indeed look like 22 contracts were bid and traded at 15.65...
Oh, sure enough....13:37....filled at 13:45.
Good find, OP! Lol
Nice find. I saw something similar (though less extreme) shortly after the bankruptcy, but also couldn't trade it. The thought has crossed my mind before of buying a bunch of fully hedged positions prior to events like these...
lol. it was bid for many minutes.
yes - i have done this. The negative part is that your margin requirements go up after an option adjustment (no portfolio margin etc). Typically at IB they will margin your account 1:1 with respect to the notional value of each contract. Can be expensive but virtually no competition after the adjustment (as the example above illustrates).
There are many arbs available - you just have to do the work to find them......
Good info, thanks. I have some other arb strategies I pursue, but monitoring stuff like this hasn't made it up the priorities list. Could be good for an IRA that has limited margin anyway.
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