PureBytes Links
Trading Reference Links
|
On Friday I noticed that OEYGE (Jul 625 calls) and OEYSE (Jul 625 puts)
closed for a combined premium of $36.60, and that OEYGF (Jul 630 calls) and
OEYSD (Jul 620 puts) closed for a combined premium of $29.80. If one were to
sell the straddle and buy the strangle, the net credit, excluding
commissions, would be $6.80, and profitability would be $1.80 assuming that
either one or the other leg of the straddle was assigned. Is this not a free
lunch? What have I missed?
Colin West
|