Conversion arbitrage is a risk-neutral strategy in options trading that exploits pricing inefficiencies in calls and puts.
Unlock the secrets of hedging with puts and calls to safeguard your investments. Find the optimal times to buy and sell under market fluctuations for reduced risk.
Tesla, Inc. (TSLA) stock has been flat over the last 3 months. Shorting out-of-the-money (OTM) puts has been a winning strategy, as premiums are high. For example, investors can earn a 2.5% yield at ...