Recent content by Retribution

Dividends maybe? If there's a large IV imbalance that is not affected by any deterministic factors it may well be a put/call imbalance. Sometimes "the market" expects a specific unidrectional move to happen. If it does, you will get killed on your short puts.

If you "write" a put you will have a specific delta, gamma, vega and theta position. You will be long delta as you're short a put, thus you can hedge this delta. You could do so by initiating a position in the underlying or going short/long call/puts. High IV does not necessarily imply easy...

Ambitious to say the least. Don't have time to skim through the whole topic, what was your annualized and total return? Sharpe ratio?

Arbitrage opportunities are scarce because of technological advances and high competition. The guys who still engage in arbitrage usually do so because they have a technological advantage (more computing power, closer to data grid, more efficient algorithms etc.).

You should use a stock screener The idea is good, but many of the proposed principes of value investing no longer hold. There is a multitude of stocks laying around, so you should screen thoroughly and have high standards. For example you could construct a model that: * Checks for 52wk...

You may be right if you label it a buy right now ;)