Friday, August 27, 2010
TSLA option arb
I love risk-free money. Because I can short TSLA in my interactivebrokers account, I shorted TSLA while buying the synthetic long with options (long calls and short puts with the same strike and expiration) to lock up .90 risk-free upon expiration of Sept options and 2.70 upon expiration of the Dec options all without using that much margin. If TSLA becomes more widely shortable before then, the options should come back into parity and I can take my gains even sooner.