I am new to both this forum and investing in general, and one of the things I have been looking at are options.
For a few of the stocks I have looked into, I've noticed that there have been Call options where the exercise price has been sufficiently lower than the Put option exercise price. These options expire on 25/2/16 and are American Style Options.
So the way I've worked it out in my head, I buy both Call and Put options. I exercise the Call option and get the shares for a reasonably lower price than market value, and then after acquiring the shares, exercise the Put option and sell them for a profit.
The Call I am looking at is currently priced at $0.395 and has an exercise price of $1.35.
The Put I am looking at is currently priced at $0.585 and has an exercise price of $2.20.
They are for the same share and are both American Style.
What I wanted to ask, is why these haven't been snatched up?
I am no genius, so if I can see this, anyone else can.
Can someone shed some light on this please?