Conversion Options Strategy (Using MarketXLS)
Published by MarketXLS Limited
About this tutorial
Template: https://marketxls.com/template/conversion-strategy/ Book A Demo: https://marketxls.com/book-demo Website: https://marketxls.com/ Author: Arman Arora ------------------------------ A conversion is an arbitrage strategy in options trading that can be performed for a riskless profit when options are overpriced relative to the underlying stock. To do a conversion, the trader buys the underlying stock and offsets it with an equivalent synthetic short stock (long put + short call) position i.e., buying 100 shares, buying 1 ATM Put, and selling 1 ATM Call with identical strike prices and expiration dates.