Hey guys,
Tell me what you think of this trade. It looks like a certain profit with zero risk. Your thoughts please !
Example:
BUY $50usd (per point) Spot Silver at market price . Currently $1788.
SELL 1 contract Silver $1600 Call (Expiry June 26) for 250
BUY 2 contract Silver for 5.4 each (total 10.8). Downside fall in silver now protected under $1600.
So, if my calculations are correct, I’ve just locked in a ‘zero risk’ profit of :
250 - 10.8 - 188 = 51.2 points per contract.
Thoughts anyone?
thanks🙏