ahhaha's ahs Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ahhaha who wrote (8733)	12/13/2006 4:38:18 PM
From: CapitalistHogg™	Read Replies (1) of 24758

FWIW I found the catch...I did the math wrong (duh). Payoff was .43 not .80. In addition the stock is hard to short (on Reg SHO), so it would be difficult to find shares. I also overlooked the fact that if there was a special dividend that could completely disrupt typical expectations. So in theory it's not QUITE risk free, but pretty damn close. I still find it interesting because somebody DID find 100,000 NFLD shares to short (@ $17.08), 1000 calls to buy (@ $7.10), and 1000 puts to sell (@ $2.95) simultaneously, thereby creating a riskless arb. They will profit somewhere around 44,500 dollars, which ain't bad for a days work and a one month payoff. Wish I could do that.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next