Why american deep ITM call has time value?

Discussion in 'Options' started by maxima120, Mar 19, 2014.

  1. zdreg

    zdreg

    do these people come looking for you or nah you go looking for them?
     
    #21     Mar 20, 2014
  2. Another thread. He was calling a MMer on here "inexperienced" and then he (Stardust) went on to ask about frequency of delta hedging (hourly?). wtf.
     
    #22     Mar 20, 2014
  3. Yes, and there goes your parity...

    The fact that put/call parity for American options is formulated as an inequality, rather than an equality, is very well known.
     
    #23     Mar 20, 2014
  4. And it's an easy out for the holder for the reversal and massively beyond the scope of a thread that asks about how they're related (put and call at strike). It's a rates trade and all trades involve risk. The primary application of the trade (rates bet) tells us so (parity violation).
     
    #24     Mar 20, 2014
  5. I don't recall seeing any such questions, sorry... I have no idea what edge there might be in something like this.
    I didn't mean to derail, sorry...
     
    #25     Mar 20, 2014
  6. No, I am glad you brought it up.
     
    #26     Mar 20, 2014
  7. newwurldmn

    newwurldmn

    Remember when he advised sle to not trade options because he might hurt himself?
     
    #27     Mar 20, 2014
  8. lol no, plz, plz link me.
     
    #28     Mar 20, 2014