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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (57316)	7/6/2006 2:26:03 PM
From: damainman	Read Replies (2) \| Respond to of 306849

gmac bank gmacbank.com

To: ChanceIs who wrote (57316)	7/6/2006 5:01:35 PM
From: deeno	Read Replies (1) \| Respond to of 306849

"Money markets aren't RISK FREE" Uh huh. Lets see, I could take the abhorrant risk of a money market paying 4.5%+ OR I could buy BZH @ 44.75 (pay a commission) Sell a 45 call (pay a commission) buy a 45 put (pay a commission) If it gets called away (i pay a commission) or sell my put (pay a commission) because even on the last day its at a premium and then sell my stock (commission) for the RISKLESS transaction to make 2.9% Riskless? What if the stock closes right at 45 or 45.01? Will you own the stock or not? You certianly couldnt sell it on the close. So you would have to wait till monday. BOING opens down 4 on scandel. Or how about a close of 44.95 you sell and find out someone exercised eariler in the day for the divdend? guess then you have to buy it back, right after the weekend merger announcment. As unlikely as this may seem most option traders will have similar tales. 4.5% money mkt 2.9% "riskless" option strategy Hmmm Bottom line, good thought, just not enough Arb to work with Im afraid. Worth a look though, thanks.