Daily Quotes

"Love is the only sane and satisfactory answer to the problem of human existence."
- Erich Fromm

"The more the theory of efficient markets is believed, the less efficient the markets become." 

- George Soros

reversal arbitrage
A riskless transaction consisting of the short sale
of a security, the purchase of a call, and the writing of a put. If the value
of the security increases, the call is exercised to negate the short sale. If the 

value of the security decreases, the put will be exercised by the holder
and the received security will negate the short sale.

I do not like the use of the word riskless when talking about derivatives.  Portfolio protection did not delviver as promise in the meltdown of 2008.