Options Arbitrage !!!

[sachuc]

Sir
HOW DID YOU CALCULATE MANUALLY RS 400 EARNED PER Day Thru theta decay
by selling both pt and call
and what is the idea behind buying a future too with th writing put and call might as well write extra puts
Sach

 

[sachuc]

What is the use of the third leg of long futures why not take buy a call instead
sach

 

[pvp999]

This is not arbitrage trade but it ll conversion trade where u can make one rupee exculding brokerage. For that u hv to buy rpl fut at 70 along with rpl 70 put & u hv to sell rpl 70 call. Make sure that cash & fut price is same if rpl fut is in premium u ll not be able to make money.

 

[pvp999]

This is not arbitrage trade but it ll conversion trade where u can make one rupee including brokerage. For that u hv to buy rpl fut at 70 along with rpl 70 put & u hv to sell rpl 70 call. Make sure that cash & fut price is same if rpl fut is in premium u ll not be able to make money.

 

[AW10]

What is the use of the third leg of long futures why not take buy a call instead
sach

Becuase 1) future is not time-decaying asset like option.
2) Better predictabilty of price movement. Future has delta of close to 1 for any variation in underlying's movement.. i.e. for any 1rs move in underlying, future will also move by approx 1Rs. This is not the case with option because its delta will change based on deep ITM, ITM, ATM, OTM, deep OTM relateive to underlyings price
3) One can apply Technical analysis on futures price which is not the case with option.

Happy Trading.

 

[sachuc]

What is the idea behind strategy of selling 2 options and buying 2 options all at diffrent strike price As I understand you gain if price stays between lowest and highest strike price but how much if at what levels how to calculate gains losses
and what strike prices to select How does this work
Sach

 

[pranay1986]

Re:

Hi I am new to options trading..

I have Unitech PA @40 premium of 2.85

Please advise what should be done ..

Should i wait for the market to fall further or should i exercise my option.. ?

 

[bizcon]

some brokers are offering assured 14% return on arbitrage. Is it possible that the opportunity exists for that long when the sms is received and we respond to the broker?