No Risk Stock Option Dividend trades

Nope you are wrong. I only sell covered calls on dividend stocks OTM. I then buy the same priced put only on stocks where the loss possibility is zero or close to it like my example. Just bought ORCl which has the above criteria. If you want to see the example let me know. A little education for you

 

Another even better stock for my strategy is TD. I have 65 Covered call with 65 put and 1.05 dividend coming up on April 10

 

The 65 synthetic is trading at 5.2 mid price reflecting a stock price of 59.8. in other words, you're selling the synthetic stock at 59.8 and buying at 60.11. Of course you're not shorting the synthetic at the mid price. It's a guaranteed loss. The open interest on the April 65 put is 2.

 

Prove me wrong.

I have TD's T&S in front of me. Give the forum the following fill prices:

Long the stock from:
Long the April 65 put from:
Short the 65 call from:

Let me guess. The prices are not forthcoming.

 

I never told you the expiration date nor the prices I got or the date I got the executions etc. So you are doing all kinds of assumptions. You know what the line is about assuming right?. If you want details, I will give them to you.

 

This is one of the few ones where i bought July CC and put. Let me know if you want details

 

Of course you won't give your fill prices because it will clearly show that you shorted the synthetic at a price that is less than the stock buy. You don't understand how it works. You're not in a covered write. You're long the stock (A) and short synthetic stock (B). The problem for you is you filled B < A.

 

I asked you several times if you wanted the trade details. You never answered. You just posted your own stuff

 

A very simple question prove it that it is No Risk trade? actually executed
you say you lost $5 so how is it a zero risk?

 

I can trade the conversion for 0.25 under shares right now on CVX. That's a good fill. Five cents inside the ask and filling shares at mid price. 1.71 dividend. Net 1.46 x 4 annualized. 5.86/166.35. 3.5% annualized vs risk free rate and excluding commissions and execution risk. A tiny bit better than that as it's April 1. Maybe 4%.

Can you do better than 4% in fixed income?