1900 and 1600 strikes? I mean that's so far way it's really like no risk, I'd almost call that arbitrage free money basically. But what you gain in profit you give up in margin and other things. when I looked the Nov 17th 1900 Put trading at 0.70 and Nov 17 Put trading at 0.30 cents, so you make roughly 40 cents

    Exactly. I used the spread

    Posted by DigiNomad on 12th of Oct 2022 at 11:48 am

    Exactly. I used the spread to reduce the margin hit. Still a much better 30-day return than what I get with cash at interactive brokers...which is around 2.5%

    I have a 'portfolio margin'

    Posted by DigiNomad on 12th of Oct 2022 at 11:55 am

    I have a 'portfolio margin' account so the margin calculations take into account the risk of each position via algorithms. I barely took any hit to margin on this trade but a standard margin account would be fairly significant with a 300 point wide spread. Come to think of it, it's probably not worth it unless you have a portfolio margin account. That didn't cross my mind when I first posted. Sorry. 

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!