Putting the put-write right

By Howard L. Simons
Just as surfers are supposed to dream of the perfect wave, traders are supposed to dream of the perfect arbitrage — those supposedly non-existent opportunities to buy and sell equivalent assets against one another and walk away with a riskless profit.

Option traders by nature are attuned to any hint of pricing anomalies, real or apparent, and they understand synthetic positions backward and forward.



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