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14
Premiums for ITM CCs consistently higher than CSPs at the same strike
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I wheel NVDA almost exclusively, and I've noticed that the premiums for deep ITM CCs are always about 10-20% higher than selling a CSP at the same strike.
They should theoretically be identical, since an ITM CC is basically a synthetic CSP.
Anyone have any insight into this? Not sure why I would ever do a CSP in this case.
I'm obviously referring to the adjusted premium on the ITM CCs, after stripping out intrinsic value differences.
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