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Strategies & Market Trends : ahhaha's ahs

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To: Ron Dior who wrote (8756)	12/22/2006 10:08:26 AM
From: CapitalistHogg™	Read Replies (2) of 24758

I guess you guys don't understand what I'm talking about, when I say words like arbitrage. When I say a pure arbitrage I'm specifically talking about simultaneously buying and selling an asset that yields a risk free profit. In this particular case it was a short stock vs a synthetic long stock. The relative values that showed up at precisely the time given on 12/8 were exactly that, risk free. Message 23094102 What I was trying to determine by asking questions on this board were "where is the risk?" So far no one has correctly identified the risk. Essentially there was no risk in this play because of the spread between the assets. There is absolutely no arguing against my point. The trade values given speak for themselves. If making 15% annualized risk free is something you aren't interested in, then so be it. The only point to be made about this set up is that it would have been difficult to execute simultaneously because the stock shares were hard to borrow.

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