Cycle Trading

[Duma]

Never heard of a Box spread. I have to look at that tomorrow when the market is active. I have always thought that options were priced with more TV in the direction the market was moving. But I can also see why having the call sp ad the put sp not being the same price could cause a big issue with the market. If I could get .25, then why not load on contracts?

I did some reading in Wikipedia and now more fully understand the issues. European options are much more suited for this strategy because they can not be exercised early. Wiki noted the Robinhood trader that lost $57K on a $5K box strategy. One of his legs was exercised and he did not react fast enough to that. This is when Robinhood stopped box spreads. If you did it in 2 trades would they really know?

Even for what I am doing, early exercise is always possible. But I have yet to have one of my ROKU options exercised early.