1. CALLS & PUTS generally IPO on a Wednesday.
2. Acquire the CALLS & PUTS late Wednesday night.
3. There is no Benefit to Acquiring them earlier as the Price is Frozen.
4. 99% of the Time both CALLS & PUTS Increase in Value on Thursdays.
5. This is because many Ports Hold both the CALLS & PUTS LONG.
6. They do this because they are Guaranteed a Profit if the OW ends up being +/- 4.00 greater than the Strike Price.
7. Dispose of the CALLS & PUTS on Thursday Pockeeting the Profits.
8. Where the Strike Price is 30.00 or higher, it may be more advisable to Hold both the CALLS & PUTS Long as a Profit is Guaranteed if the OW ends up being +/- 4.00 greater than the Strike Price.
9. For example, if the Strike Price were 40.00 and the OW ended up at 46.12, you would make +4.12 on the CALL & lose -2.00 on the PUT for a Net Profit of +2.12 (less Commission).
10. For example, if the Strike Price were 40.00 and the OW ended up at 33.65, you would lose -2.00 on the CALL & make +6.35 on the PUT for a Net Profit of +4.35 (less Commission).
11. The Worst that you can do Holding both Long is -4.00, that being the virtually impossible outcome where the OW ended up Identical to the Strike Price.
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