Put-Call Parity Arbitrage Opportunities

Vrag

New Member
#1
Hi,

Are there any automated tools available to find the arbitrage opportunities from the series of Stock Options which do not satisfy the Put-Call Parity principle?

Also, does anybody know of good course/textbook on options trading strategies which covers adjustments etc.

I came across a good quant intensive Options course: https://www.udemy.com/course/options-dynamics/?couponCode=B20122022 which is free and it teaches lot of math behind the option pricing. Now I am looking to level-up and looking for a course which can yield in-depth knowledge of more complex options trading strategies like iron-condor etc.
I will really appreciate if anybody can refer to such programs.
 

mohan.sic

Well-Known Member
#2
Hi,

Are there any automated tools available to find the arbitrage opportunities from the series of Stock Options which do not satisfy the Put-Call Parity principle?

Also, does anybody know of good course/textbook on options trading strategies which covers adjustments etc.

I came across a good quant intensive Options course: https://www.udemy.com/course/options-dynamics/?couponCode=B20122022 which is free and it teaches lot of math behind the option pricing. Now I am looking to level-up and looking for a course which can yield in-depth knowledge of more complex options trading strategies like iron-condor etc.
I will really appreciate if anybody can refer to such programs.
Hi Vrag


There were couple of tools sometime back I forgot names but now I think they are no longer available reason being
now it's really hard to capture such opportunities. From 2019 and specially post covid order placement using bots increased a lot
and finding such opportunities has become rare and even if we find, capturing them is tough as these automated programs place orders and keep changing their orders to best bid/ask thereby always taking advantage than human orders.

Also few years back these parity opportunities used to give reasonable return, but gradually as markets turning more matured and efficient ( in terms of operations, technology) even in stock options (Index options are almost not worth trading) the returns are just like 20% annualized of Margin blocked. So not really lucrative for retail traders.

Second part of your question on Adjustments -

I have no idea on specific course but what I think is you wont get a complete picture from specific text on practical trading.
There is a strong reason why I say this. If you think you are good at basics of adjustments let me know and I can explain the reason.
But you are just starting to learn adjustments with zero practice (live or paper), you may not be able to realize what I am trying to explain.
 
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