SBE free money? via /r/wallstreetbets #stocks #wallstreetbets #investing

SBE free money?

Alright autists, I know everyone's already getting some sweet tendies from SBE, but I'm seeing a can't-go-tits-up opportunity or I'm just too fking retarded. Here's the play:

  • Sell 40 Strike 02/21 Put
  • Buy 40 Strike 02/21 Call
  • Sell 100 SBE shares

Effectively, this should be no profit, but you get $5 to $8 bucks of "risk-free" profit when you just let this thing go to expiration. SBE goes to 0? The put holder can have my short shares. SBE goes to inf? I got the call to cover my short shares. The put premiums are so fking high and I have no idea why – I'm guessing a shitton of short interest and maybe borrowing rate is through the roof?


TLDR: Short 40 Strike 02/21 Put + Long 40 Strike 02/21 Call + Short 100 SBE shares = Free Money?

Submitted November 24, 2020 at 06:59PM by prayfordaddybranspn
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