Long call short put options strategy 7s
Put-call parity theory in the presence of dividends is extended to take account of transaction costs and new, testable models are stategy. These models are used to test the efficiency of the London Traded Options Market using synchronous option and share prices. When account is taken only of option spread, significant numbers of deviations from put-call parity are identified.
When commission costs on options and shares are considered however, almost none of these deviations prove to be exploitable. Unformatted text preview: 11. When one person wins, another loses.The winners are few.First you have the highly efficient puy makers. They win in the long-term by pht risk and collecting the difference in the bid-ask spreads. In exchange, they provide market liquidity.The brokerage houses win big, too.
They skim their cut off every trade and make out like bandits.And finally you have the.
Options 7s short long strategy put call