Yes and you can sell a synthetic call (short stock and short put) and buy a call and have cash left over (For Jan. $10 put/short stock/call there is about .25 for no risk ( guarnatted profit) no matter what the stock does. The only thing is it costs a lot to borrow this stock (~.12/share fort he 10 days (actually it is 65%/year cost to borrow). Most stocks are .25%. So that is further evidence that the betting is so heavily on it falling, it would seem silly to won it. Does anyone else play the game to profit from high option prices? I would like to trade info on CO's and tactics for that.
I don't short stocks any more. my broker (etrade) has gone into my account and covered my shorts right when the stock was crashing (ldk, just last month) and cost me several thousand dollars. I was covered with a call that lost money and missed out on the big gain on the short. They had some bullshit excuse that they had to call in all the shorts because there were no shares to barrow but I noticed 22 million shares were still short. In other words it is to easy to get screwed shorting