More Arbitrage in Option Markets

A very interesting post from Volatility Futures & Options on an arbitrage between the pre- and post-split January options for VXX.  Very curious about his findings and hope to see more in the future.

General Electric

With roughly 5:4 odds in favor of a 25bp rate cut tomorrow, I am going long some GE December calls. Fundamentals aside, GE is going to make a big move, one way or the other, depending on what happens tomorrow. Will be selling before tomorrow's close.

Quick Apple Play

Going long some deep ITM Apple, Inc. (AAPL) Nov Calls before next week's earnings report. Although they're all clearly overvalued given the B-S model, it appears that the Nov 60 C is at least on par, at aprx. a 1:1 ratio against it's theoretical value vs. an 82:1 ratio of the Nov 220 C at this morning's open.