FC2Video

http://twitter.com/hamzeianalytics - The Admiral, a former CBOE Designated Primary Market Maker, does a quick example with Costco (COST) on how to create arbitrage opportunities and make instant profits through stock-option equalities. The Admiral has stressed the importance of these stock-option equalities (also called put-call parity, synthetic stock) and this is why. Techniques like this are harder to make a lot of money today with computers quickly taking advantage of these arbitrage opportunities, but this is still important fundamental mechanics of the market to understand.

This an excerpt from the "Trade Options like a DPM Webinar #2 - Verticals/Boxes" Q&A session: http://hamzeianalytics.com/pow_register.asp

ABOUT "THE ADMIRAL"

The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most ...