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> 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
Sounds like the 625s settled on their offers while the 620p and 630c settled
on their bids. If the market usually shows a .50 ba spread, that would work
out about right. Of course, no one on the floor will do the package with
you at that price.
Sean
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